Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Note 9. Goodwill and Intangible Assets

Goodwill

Changes in the carrying amount of goodwill for the years ended December 31, 2018 and 2017 were as follows:

	Wecast business
Balance as of December 31, 2017	$	-
Acquisitions		704,884
Foreign currency translation and other adjustments		-
Balance as of December 31, 2018	$	704,884

Intangible Assets

Information regarding amortizing and indefinite lived intangible assets consisted of the following:

			December 31, 2018										December 31, 2017
	Weight Average Remaining Useful Life		Gross Carry Amount		Accumulated Amortization			Impairment Loss			Net Balance		Gross Carry Amount		Accumulated Amortization			Impairment Loss			Net Balance
Amortizing Intangible Assets
Animation Copyright		1.3	$	301,495	$	(64,606	)	$	-		$	236,889	$	-	$	-		$	-		$	-
Software and licenses		-		97,308		(93,251	)		-			4,057		214,210		(199,626	)		-			14,584
Patent and trademark (i)		-		-		-			-			-		92,965		(39,943	)		(53,022	)		-
Influencer network (ii)		9.7		1,980,000		(66,000	)		-			1,914,000		-		-			-			-
Customer contract (ii)		2.7		500,000		(55,556	)		-			444,444		-		-			-			-
Trade name (ii)		14.7		110,000		(2,444	)		-			107,556		-		-			-			-
Technology platform (ii)		6.7		290,000		(13,808	)		-			276,192		-		-			-			-
Total amortizing intangible assets			$	3,278,803	$	(295,665	)	$	-		$	2,983,138	$	307,175	$	(239,569	)	$	(53,022	)	$	14,584
Indefinite lived intangible assets
Website name (iii)				159,504		-			(134,290	)		25,214		134,290		-			-			134,290
Patent (i)				28,000		-			-			28,000		10,599		-			(10,599	)		-
Total intangible assets			$	3,466,307	$	(295,665	)	$	(134,290	)	$	3,036,352	$	452,064	$	(239,569	)	$	(63,621	)	$	148,874

(i) During the second quarter of 2017, the Company determined that one of its subsidiaries in the US would not serve the core business or generate future cash flow. As no future cash flows will be generated from using the patents owned by this subsidiary, the Company estimated the fair value of those patents to be nil as of June 30, 2017. Fair value was determined using unobservable (Level 3) inputs. Impairment loss from patents of $63,621 was recognized in 2017 to write off the entire book value of the patents.

(ii) During the third quarter of 2018, the Company completed the acquisition of 65.65% share of Grapevine. See Note 6.

(iii) The Company wrote off the YOD website in the amount of approximately $134,000 in 2018 since we no longer used the website.

Amortization expense relating to purchased intangible assets was $212,429 and $87,096 for the years ended December 31, 2018, and 2017, respectively.

The following table outlines the expected amortization expense for the following years:

	Amortization to be
Years ending December 31,	recognized
2019	$	546,882
2020		520,921
2021		357,873
2022		246,762
2023 and thereafter		1,310,700
Total amortization to be recognized	$	2,983,138