Annual report pursuant to Section 13 and 15(d)

Intangible Assets

v3.3.1.900
Intangible Assets
12 Months Ended
Dec. 31, 2015
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets

5 INTANGIBLE ASSETS

 

Intangible assets are as follows:

 

Ksix and BMG - The customer lists and related contracts of KSIX and BMG were recorded at their fair value of $1,143,162 upon their acquisition on December 23, 2014. The Company has determined a useful life of existing contracts and customer lists of three years and is amortizing the cost over that period.

 

DIQ - The customer lists and related contracts of DIQ were recorded at their fair value of $1,630,973 upon their acquisition on October 12, 2015. The Company has estimated the fair value of the assets acquired and liabilities assumed as part of the acquisition and is currently undergoing a formal valuation and will adjust these estimates accordingly within the one year measurement period. The Company has determined a useful life of existing contracts and customer lists of three years and is amortizing the cost over that period.

 

    2015     2014  
             
Cost   $ 2,774,135     $ 1,143,162  
Accumulated amortization     (507,777 )     (8,352 )
Balance   $ 2,266,358     $ 1,134,810  
                 
Amortization expense:   $ 499,425     $ 8,352