Annual report pursuant to Section 13 and 15(d)

Goodwill

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Goodwill
12 Months Ended
Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill

  8. Goodwill

 

    December 31, 2020   December 31, 2019
         
Opening balance   $ 1,663,385     $ 262,552  
Acquisition of Virtual Generation     —         1,401,608  
Impairment charge     —         —    
Foreign exchange movements     (265 )     (775 )
Closing balance   $ 1,663,120     $ 1,663,385  

 

Goodwill represents the excess purchase price paid over the fair value of assets acquired, including any other identifiable intangible assets.

 

On January 30, 2019, the Company acquired Virtual Generation Limited, as disclosed in Note 3 above. The goodwill on acquisition arose as the proceeds paid on acquisition exceeded the fair value of the identifiable assets less assumed liabilities and imputed deferred tax liabilities on identifiable intangible assets by $1,401,608.

 

The Company evaluates goodwill for impairment on an annual basis during the last month of each year and at an interim date if indications of impairment exist. Goodwill impairment is determined by comparing the fair value of the reporting unit to its carrying amount with an impairment being recognized only when the fair value is less than carrying value and the impairment is deemed to be permanent in nature.