Quarterly report pursuant to Section 13 or 15(d)

Other Intangible Assets, Net, Disclosure

v3.7.0.1
Other Intangible Assets, Net, Disclosure
6 Months Ended
Jun. 30, 2017
Notes  
Other Intangible Assets, Net, Disclosure

NOTE 7 - OTHER INTANGIBLE ASSETS, NET

 

Other intangible assets, net consist of the following at:

 

June 30,

Accumulated

June 30,

2017 Gross

Amortization

2017 Net

 

License agreements and contracts

$

75,000

$

(17,500)

$

57,500

Domain names

75,000

(35,081)

39,919

Software

43,500

(1,208)

42,292

$

193,500

$

(53,789)

$

139,711

December 31,

Accumulated

December 31,

2016 Gross

Amortization

2016 Net

 

 

License agreements and contracts

$

75,000

$

(10,000)

$

65,000

Domain names

75,000

(30,242)

44,758

Capitalized software costs

25,000

--

25,000

$

175,000

$

(40,242)

$

134,758

 

On April 18, 2017, the Company entered into an agreement to acquire specific digital marketing software assets from CoverCake, Inc., specifically, CoverCake's intelligent algorithms for data mining and consumer engagement.  The transaction closed on May 30, 2017.  The CoverCake software is expected to enhance both the sophistication and proprietary strengths of Spindle's Catalyst Marketing System. CoverCake's software capabilities include intelligent content aggregation; data mining on various social media data feed platforms, and a robust Content Management System (CMS) backend that will be a significant enhancement to the Catalyst Marketing System.  CoverCake has been utilized in the past by enterprise level merchants as well as television and radio broadcast organizations.  The purchase price was 300,000 shares of Spindle unregistered common stock valued at $43,500 along with launch and revenue based payments as certain performance targets are met, and the software will be amortized over three years.  The launch consideration and earnout potential could total up to $350,000, but the actual total is not currently determinable beyond a reasonable doubt and therefore not included in the Company’s financial statements as contingent liabilities.

 

During the three and six months ended June 30, 2017, the Company recorded amortization expense of $7,377 and $13,547, respectively.  During the three and six months ended June 30, 2016, the Company recorded amortization expense of $113,392 and $221,761, respectively.