Goodwill and Intangible Assets

9 Months Ended

Sep. 30, 2014

Goodwill And Intangible Assets Disclosure [Abstract]

4. Goodwill and Intangible Assets

The components of goodwill and intangible assets are as follows:

September 30, 2014 (Unaudited)	Estimated Useful Life		Gross Carrying Amount		Accumulated Amortization		Net
Finite lived intangible assets:
Customer relationships		5 years	$	12,720,000	$	3,074,000	$	9,646,000
Trademarks		7 years		6,230,000		1,075,417		5,154,583
Patents		7 years		230,683		230,683		—
Software		7 years		859,259		3,137		856,122
Customer lists		5 years		307,153		106,077		201,076
Total intangible assets			$	20,347,095	$	4,489,314	$	15,857,781

December 31, 2013	Estimated Useful Life		Gross Carrying Amount		Accumulated Amortization		Net
Finite lived intangible assets:
Customer relationships		5 years	$	12,720,000	$	1,166,000	$	11,554,000
Trademarks		7 years		6,230,000		407,917		5,822,083
Patents		7 years		230,683		216,951		13,732
Customer lists		5 years		307,153		60,004		247,149
Total intangible assets			$	19,487,836	$	1,850,872	$	17,636,964

September 30, 2014 (Unaudited) and December 31, 2013		Estimated Useful Life				Gross Carrying Amount				Accumulated Amortization				Net
Goodwill			Indefinite			$	58,337,290				—			$	58,337,290

We compute amortization using the straight-line method over the estimated useful lives of the assets. The amortization expense related to intangible assets was $875,740 and $2,638,441 for the three and nine months ended September 30, 2014, respectively, with $770,497 of comparable expense for the three and nine month periods ended September 30, 2013. We have no indefinite-lived intangible assets other than goodwill. The goodwill is not deductible for tax purposes. As required by FASB ASC Topic 350, Intangibles – Goodwill and Other, we performed our goodwill impairment analysis in the third quarter with no impairment recorded.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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