Note 6 - Goodwill

3 Months Ended

Mar. 31, 2021

Notes to Financial Statements

Goodwill Disclosure [Text Block]

6.

         

Goodwill:

The changes in the carrying amount of goodwill for the periods ended

March 31, 2021,

and

2020

were as follows:

	March 31, 2021		December 31, 2020
Goodwill, balance at beginning of period	$	3,301,439	$	3,301,439
Impairment of goodwill		-		-
Goodwill, balance at end of period	$	3,301,439	$	3,301,439

The Company's annual goodwill impairment analysis performed during the

fourth

quarter of fiscal

2020

included a quantitative analysis of Kidoz Ltd. reporting unit (consisting of intangible assets (Note

5

) and goodwill). The reporting unit has a carrying amount of

$5,413,410

(

December 31, 2020 -

$5,552,428

) as at

December 31, 2020.

The Company performed a discounted cash flow analysis for Kidoz Ltd. for the year ended

December 31, 2020.

These discounted cash flow models included management assumptions for expected sales growth, margin expansion, operational leverage, capital expenditures, and overall operational forecasts. The Company classified these significant inputs and assumptions as Level

3

fair value measurements. Based on the annual impairment test described above there was

no

additional impairment determined for fiscal

2020.