Quarterly report pursuant to Section 13 or 15(d)

Goodwill and Purchased Identifiable Intangible Assets

v3.8.0.1
Goodwill and Purchased Identifiable Intangible Assets
3 Months Ended
Mar. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Disclosure [Text Block]
Note 5. Goodwill and Purchased Identifiable Intangible Assets
 
Impairment 
 
During the three months ended March 31, 2018, the Company recorded a goodwill impairment charge of $2.6 million within the promotion segment. The impairment was identified as part of management’s review of impairment indicators. Accordingly, it was determined that the recoverable value of the reporting units was less than the carrying value and therefore, an impairment loss was recorded.
 
Goodwill
 
The change in the carrying amount of goodwill for the three months ended March 31, 2018 is as follows:
 
Balance as of December 31, 2017
 
$
5,963,537
 
Impairment – goodwill
 
 
(2,629,225)
 
Balance as of March 31, 2018
 
$
3,334,312
 
 
Intangible Assets
 
The change in the carrying amount of intangible assets for the three months ended March 31, 2018 is as follows:
 
Balance as of December 31, 2017
 
$
2,887,094
 
Amortization
 
 
(162,072)
 
Balance as of March 31, 2018
 
$
2,725,022
 
 
Identified intangible assets consist of the following:
 
 
 
 
 
March 31, 2018
 
Intangible assets
 
Useful
Life
 
Gross
Assets
 
Accumulated
Amortization
 
Net
 
Venue relationships
 
7 years
 
$
2,410,000
 
$
(449,839)
 
$
1,960,161
 
Ticketing software
 
3 years
 
 
90,000
 
 
(45,000)
 
 
45,000
 
Trademark and brand
 
3 years
 
 
610,000
 
 
(258,889)
 
 
351,111
 
Fighter contracts
 
3 years
 
 
140,000
 
 
(17,500)
 
 
122,500
 
Promoter relationships
 
6 years
 
 
277,099
 
 
(44,599)
 
 
232,500
 
Sponsor relationships
 
4 years
 
 
20,000
 
 
(6,250)
 
 
13,750
 
Total intangible assets, gross
 
 
 
$
3,547,099
 
$
(822,077)
 
$
2,725,022
 
 
Amortization expense for the three months ended March 31, 2018 and 2017, was $162,072 and $517,376, respectively.
 
As of March 31, 2018, estimated amortization expense for the unamortized acquired intangible assets over the next five years and thereafter is as follows:
 
Remainder of 2018
 
$
486,214
 
2019
 
 
609,119
 
2020
 
 
441,897
 
2021
 
 
409,952
 
2022
 
 
397,036
 
Thereafter
 
 
380,804
 
 
 
$
2,725,022