NOTE 6.

GOODWILL:

Goodwill represents the excess of the aggregate purchase price of an acquisition over the fair value of the net assets acquired in the businesses combination. Our goodwill was comprised of the following amounts for each of our acquisitions which we have deemed to be separate reporting units for purposes of evaluating our goodwill for impairment:

	December 31, 2018		December 31, 2017
Virtuoso	$	-	$	939,881
Ameri Arizona		5,450,000		10,416,000
Bigtech		-		314,554
Ameri Consulting Service Pvt. Ltd.		-		1,948,118
Ameri Georgia		3,470,522		3,470,522
Ameri California		4,809,248		4,809,248
Total	$	13,729,770	$	21,898,323

During the year ended December 31, 2018, as a result of performing our annual impairment testing, we determined that impairment existed on certain of our reporting units and recorded impairment charges amounting to $8.2 million as a result of our impairment testing. The full goodwill impairment on Virtuoso, Bigtech and Ameri Consulting Service Pvt. Ltd, and the partial goodwill impairment on Ameri Arizona were primarily driven by declines in estimated future cash flows to be generated by the reporting units as these reporting units that have experienced declining cash flows that what were expected at the time of each acquisition. The determination of the fair value of a reporting unit requires significant inputs, judgments and estimates. These fair value measurements, and related inputs, are considered to be Level 3 measures under the fair value hierarchy as further described in Note 16. There was no impairment charges reflected during the year ended December 31, 2017. There were no other changes to the carrying value of goodwill during the year ended December 31, 2018. During the year ended December 31, 2017, as a result of the acquisition of Ameri California as described in Note 4, we recorded $4.8 million of goodwill.