Recent Business Combinations

In October 2016, National Investors Holdings, LLC ("NIH"), a subsidiary of the Company, acquired all of the outstanding shares of a title insurance agency doing business in Texas. NIH paid $10 million plus a $918,000 adjustment for the title insurance agency’s net cash position at closing.

Intangible Assets

The fair values of intangible assets recognized as the result of title insurance agency acquisitions, all Level 3 inputs, are principally based on values obtained from a third party valuation service. In accordance with ASC 350, Intangibles – Goodwill and Other, management determined that certain events and changes in circumstances occurred during 2017 that indicated a portion of the carrying amount of the Company’s intangible assets may not be recoverable. Therefore, net identifiable intangible assets of $153,667 were impaired during 2017.

Identifiable intangible assets consist of the following as of December 31:



Year Ended:	2017			2016
Referral relationships	$	6,416,215		$	6,416,215
Non-complete agreements	1,405,685			1,405,685
Tradename	560,000			560,000
Total	8,381,900			8,381,900
Accumulated amortization	(1,374,461		)	(475,110		)
Identifiable intangible assets, net	$	7,007,439		$	7,906,790

The following table provides the estimated aggregate amortization expense for each of the five succeeding fiscal years:



Year Ended:
2018	$	642,253
2019	568,920
2020	568,920
2021	561,587
2022	524,920
Thereafter	4,140,839
Total	$	7,007,439

Goodwill and Title Plant

As of December 31, 2017 and 2016, the Company recognized $4,349,851 in goodwill and $690,000 in a title plant, net of impairments, as the result of title agency acquisitions. The fair values of goodwill and the title plant, both Level 3 inputs, are principally based on values obtained from a third party valuation service. In accordance with ASC 350, Intangibles – Goodwill and Other, management determined that certain events and changes in circumstances occurred during 2017 that indicated a portion of the carrying amount of the Company’s goodwill may not be recoverable. Therefore, goodwill of $29,000 was impaired during 2017.