INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

INTANGIBLE ASSETS

The Company holds several patents for the real-time calculation of shipping costs for items purchased through online auctions using a zip code as a destination location indicator. It includes shipping charge calculations across multiple carriers and accounts for additional characteristics of the item being shipped, such as weight, special packaging or handling, and insurance costs. These patents help facilitate rapid and accurate estimation of shipping costs across multiple shipping carriers and also include real-time calculation of shipping.

        In addition, the Company has various other intangibles from past business combinations.

At December 31 intangible assets consisted of the following:

	2018		2017
Patents	$	16,000	$	16,000
Software		83,750		83,750
Trade Name		785,038		850,311
Technology		501,360		540,201
Client list / relationship		4,620,599		4,998,130
Accumulated amortization		(1,715,974)		(986,070)
	$	4,290,773	$	5,502,322

Amortization expense of intangible assets for the years ended December 31, 2018 and 2017 was $814,334 and $824,512, respectively.

Amortization of intangible assets for the next five years ending December 31 are as follows:

Year Ended December 31,
2019		455,562
2020		450,799
2021		450,799
2022		293,790
2023		293,790
Total 5 year amortization	$	1,944,740

Goodwill

In 2016, the Company entered into an Amalgamation Agreement (the “Amalgamation Agreement”) with emergeIT, Inc., which does business as “ShipTime”. Of the total estimated purchase price, $9,989,685 was allocated to goodwill and was attributable to expected synergies between the combined companies, including the ability for the combined companies to estimate and process shipping calculations and support e-commerce shopping cart platforms in addition to the acquired workforce. Goodwill represented the excess of the purchase price of the acquired business over the estimated fair value of the underlying net tangible and intangible assets acquired. During the fourth quarter of 2018, the Company determined that the value of goodwill was impaired and recorded a loss on impairment of goodwill of $10,354,172. None of the goodwill was deductible for income tax purposes.

For the years ended December 31, 2018 and 2017, goodwill activity was as follows;

Balance, January 1, 2017	$		9,989,685
Effect of exchange rate changes			705,435
Balance, December 31, 2017			10,695,120
Effect of exchange rate changes			(340,948	)
Loss on impairment of goodwill			(10,354,172	)
Balance, December 31, 2018		$	-