Note 4. Goodwill and Intangible Assets (Tables)

12 Months Ended

Dec. 31, 2014

Unaudited condensed pro-forma financial results

	Year Ended December 31, 2013
Revenues	$	15,892,000
Net Income	$	776,000
Basic earnings per share	$	0.40
Diluted earnings per share	$	0.38

Components of goodwill and intangible assets

	December 31, 2014
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Customer lists	$	1,770,000	$	(891,585	)	$	878,415
Customer relationships-noncontractual		1,747,000		(318,809	)		1,428,191
Proprietary software		782,000		(306,972	)		475,028
Trademarks		952,000		—			952,000
Goodwill		2,241,872		—			2,241,872
Total intangible assets	$	7,492,872	$	(1,517,366	)	$	5,975,506

	December 31, 2013
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Customer lists	$	1,770,000	$	(373,883	)	$	1,396,117
Customer relationships non-contractual		1,505,000		(100,690	)		1,404,310
Proprietary software		601,000		(108,298	)		492,702
Trademarks		720,000		—			720,000
Goodwill		1,056,873		—			1,056,873
Total intangible assets	$	5,652,873	$	(582,871	)	$	5,070,002

Schedule of future amortization of intangible assets

Years Ending December 31:
2015	$	982,871
2016		760,653
2017		282,538
2018		282,205
2019		275,178
Thereafter		198,189
Total	$	2,781,634

PrecisionIR

Fair value of acquired intangible assets and goodwill

Total Consideration	$	3,450,000
Plus:  Liabilities assumed in excess of tangible assets		1,564,030
Total fair value of PIR intangible assets and goodwill	$	5,014,030
Allocation of PIR intangible assets and goodwill:
Amortizable intangible assets	$	3,300,000
Trademarks		720,000
Goodwill		994,030
Total fair value of PIR intangible assets and goodwill	$	5,014,030

Amortizable intangible assets

	Asset Amount		Useful Life (years)
Client relationships	$	1,480,000		7
Customer list		1,270,000		3
Software		550,000		3
	$	3,300,000

Assets and liabilities acquired

Cash	$	271,602
Accounts receivable		1,405,208
Prepaid expenses and other assets		366,876
Furniture, equipment, and improvements		297,076
Deposits		10,283
Total assets		2,351,045
Accounts payable and accrued expenses		(1,352,831	)
Deferred revenue		(1,452,780	)
Net tax liabilities		(1,109,464	)
Total liabilities		(3,915,075	)
Liabilities assumed in excess of tangible assets	$	(1,564,030	)

Accesswire

Fair value of acquired intangible assets and goodwill

Total Consideration	$	1,840,000
Allocation of Accesswire intangible assets and goodwill:
Amortizable intangible assets	$	423,000
Trademarks		232,000
Goodwill		1,185,000
Total fair value of Accesswire intangible assets and goodwill	$	1,840,000

Amortizable intangible assets

	Asset Amount		Useful Life (years)
Client relationships	$	242,000		7
Software		181,000		5
	$	423,000