Goodwill

6 Months Ended

Jun. 30, 2022

Goodwill

Goodwill

6. Goodwill:

The changes in the carrying amount of goodwill for the period ended June 30, 2022, and the year ended December 31, 2021 were as follows:

	June 30, 2022		December 31, 2021
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 2021 included a quantitative analysis of Kidoz Ltd. reporting unit (consisting of intangible assets (Note 5), deferred tax liability and goodwill). The reporting unit has a carrying amount of $4,511,266 (December 31, 2021 - $4,785,857) as at June 30, 2022. The Company performed a discounted cash flow analysis for Kidoz Ltd. for the year ended December 31, 2021. 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 2021 or 2020.