Goodwill and Intangibles

6 Months Ended

Jun. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure [Text Block]

Note 5 – Goodwill and Intangibles

We account for goodwill and other intangible assets under GAAP. Under GAAP, goodwill and intangible assets with indefinite useful lives are not amortized, but are instead tested for impairment (i) on at least an annual basis and (ii) when changes in circumstances indicate that the fair value of goodwill may be below its carrying value. These circumstances include, but are not limited to (i) a significant adverse change in the business climate, (ii) unanticipated competition or (iii) an adverse action or assessment by a regulator. Determining impairment involves estimating the fair value of a reporting unit using a combination of (i) the income or DCF approach and (ii) the market approach that utilizes comparable companies’ data. If the carrying amount of a reporting unit exceeds its fair value, the amount of the impairment loss must be measured. The impairment loss is calculated by comparing the implied fair value of the reporting unit’s goodwill to its carrying amount. In calculating the implied fair value of the reporting unit’s goodwill, the fair value of the reporting unit is allocated to all of the assets and liabilities of the reporting unit. The excess of the fair value of a reporting unit over the amount assigned to its other assets and liabilities is the implied value of goodwill. We recognize impairment loss when the carrying amount of goodwill exceeds its implied fair value. Our goodwill totaled $49,903,029 at June 30, 2022 and December 31, 2021. 

In 2021 and 2020, we engaged an independent valuation firm to aid in the completion of our annual impairment testing for existing goodwill. For 2021 and 2020, the testing results indicated no impairment charge to goodwill as the determined fair value was sufficient to pass the impairment test.  

Our intangible assets subject to amortization consist of acquired customer relationships, regulatory rights and trade names. We amortize intangible assets with finite lives over their respective estimated useful lives. Identifiable intangible assets that are subject to amortization are evaluated for impairment. In addition, we periodically reassess the carrying value, useful lives and classifications of our identifiable intangible assets.

The components of our identified intangible assets are as follows:

		June 30, 2022				December 31, 2021
	Useful Lives	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Definite-Lived Intangible Assets
Customers Relationships	14-15 yrs	$	42,878,445	$	29,617,882	$	42,878,445	$	28,806,055
Regulatory Rights	15 yrs		4,000,000		3,866,631		4,000,000		3,733,299
Trade Name	3-5 yrs		310,106		242,454		310,106		211,444
Indefinitely-Lived Intangible Assets
Video Franchise			3,000,000		-		3,000,000		-
Spectrum			877,814		-		877,814		-
Total		$	51,066,365	$	33,726,967	$	51,066,365	$	32,750,798
Net Identified Intangible Assets				$	17,339,398			$	18,315,567

Amortization expense related to the definite-lived intangible assets was $967,169 and $1,661,885 for the six months ended June 30, 2022 and 2021. Amortization expense for the remaining six months of 2022 and the five years subsequent to 2022 is estimated to be:

● (July 1 – December 31)	$	976,207
● 2023	$	1,660,295
● 2024	$	1,623,654
● 2025	$	1,618,732
● 2026	$	1,613,809
● 2027	$	906,667