Annual report pursuant to Section 13 and 15(d)

Goodwill and Intangible Assets

Goodwill and Intangible Assets
12 Months Ended
Dec. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets

Note 4 - Goodwill and Intangible Assets


Goodwill and intangible assets consisted of the following:


          December 31, 2017  
    Estimated life
in years
    Gross amount     Accumulated
Goodwill     Indefinite     $ 3,015,700        
 Intangible Assets                        
Intangible assets not subject to amortization Trademarks     Indefinite       294,268        
Intangible assets subject to amortization Customer list     5 - 15        897,274       897,274  
ABC Acquired contracts     5       310,000       72,333  
SIAS Acquired contracts     5       660,000       154,000  
Non-compete agreements     4       272,147       266,036  
Total Intangible Assets
            2,433,689       1,389,643  
Total Goodwill and Intangible Assets
          $ 5,449,389     $ 1,389,643  


Scheduled amortization over the next five years as follows:


Years ending December 31,        
2018       197,333  
2019       196,778  
2020       194,000  
2021       161,667  
Total     $ 749,778  


Amortization expense for the years ended December 31, 2017 and 2016 were $222,863 and $63,524 respectively.


Fair values are primarily determined through the use of inputs that are not observable from market-based information. Under ASC 805-10-25-13, management may adjust the fair values of acquired assets or assumed liabilities for a period of up to one year from the date of the acquisition to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have an effect on the measurement of the amounts recognized as of that date. During the fourth quarter of 2017 and within the measurement period, the Company made a net adjustment of $937,667 to the intangibles acquired from in the ABC acquisition which reduced the previous goodwill recorded from the transaction by $970,000 in 2016. The Company also recorded $32,333 in amortization for the same period in 2016. The effect of the change to 2016 increased the net loss by $32,333 and reduced retained deficit $32,333 and had no effect on loss per share.