Ebyline Acquisition (Tables)

6 Months Ended

Jun. 30, 2015

Schedule of Business Acquisitions by Acquisition, Contingent Consideration [Table Text Block]

Fiscal Year 2015. For the year ending December 31, 2015, should Ebyline achieve Content-Only Revenue of not less than $17,000,000, IZEA will pay an amount up to $1,800,000 in the form of at least 50% in cash and the remaining portion in the form of cash and/or shares of IZEA Common Stock at IZEA’s discretion based on the following scale:



% of 2015 Revenue Target Achieved by Ebyline	% of Performance Payment Owed	Year 1 Performance Payment Owed (at least 50% payable in cash)
<90%	—	$—
90%	90%	$1,620,000
95%	95%	$1,710,000
100%	100%	$1,800,000

(ii)Fiscal Year 2016. For the year ending December 31, 2016, should Ebyline achieve Content-Only Revenue of not less than $27,000,000, IZEA will pay an amount up to $1,800,000 in the form of cash and/or shares of IZEA Common Stock at IZEA’s discretion based on the following scale:



% of 2016 Revenue Target Achieved by Ebyline	% of Performance Payment Owed	Year 2 Performance Payment Owed
<90%	—	$—
90%	60%	$1,080,000
95%	75%	$1,350,000
100%	100%	$1,800,000

(iii)Fiscal Year 2017. For the year ending December 31, 2017, should Ebyline achieve Content-Only Revenue of not less than $32,000,000, IZEA will pay an amount up to $1,900,000 in the form of cash and/or shares of IZEA Common Stock at IZEA’s discretion based on the following scale:



% of 2017 Revenue Target Achieved by Ebyline	% of Performance Payment Owed	Year 3 Performance Payment Owed
<90%	—	$—
90%	60%	$1,140,000
95%	75%	$1,425,000
100%	100%	$1,900,000

Schedule of Business Acquisitions Consideration Payable [Table Text Block]

The fair value of the total estimated future consideration to be paid is as follows:



	Estimated Gross Purchase Consideration		Initial Present Value		Remaining Present and Fair Value
	1/30/2015		1/30/2015		6/30/2015
Cash paid at closing	$	1,200,000	$	1,200,000	$	—
Present value of the guaranteed purchase price (a)	2,127,064		1,982,639		2,026,428
Fair value of contingent performance payments (b)	2,210,000		2,210,000		2,210,000
Acquisition costs to be paid by Ebyline shareholders (c)					(89,700		)
Total estimated consideration	$	5,537,064	$	5,392,639	$	4,146,728

Current portion of acquisition costs payable					1,070,471
Long term portion of acquisition costs payable					3,076,257
Total acquisition costs payable					$	4,146,728

Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block]

The identifiable intangible assets in the purchase price allocation consist of the following assets:



			Accumulated Amortization		Net Book Value		Useful Life (in years)
Identifiable Intangible Asset	Initial Value		6/30/2015		6/30/2015
Content provider network	$	30,000	12,500		17,500		1
Ebyline trade name	40,000		16,667		23,333		1
Workflow customers	210,000		43,750		166,250		2
Developed technology	300,000		25,000		275,000		5
NewsDesk customers	1,790,000		149,166		1,640,834		5
Total identifiable intangible assets	$	2,370,000	$	247,083	$	2,122,917

Finite-lived Intangible Assets Amortization Expense [Table Text Block]



The estimated amortization expense for future years is as follows:
2015	$	543,583
2016	528,834
2017	426,750
2018	418,000
2019	418,000
Thereafter	34,833
Total	$	2,370,000