| Goodwill and Intangible Assets |
NOTE 8 – GOODWILL AND INTANGIBLE ASSETS Goodwill consists of the following:
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|
|
|
|
| |
|
|
|
Balance as of December 31, 2022 |
|
$ |
5,837,060 |
|
Measurement period adjustment to goodwill (Note 5) |
|
|
198,140 |
|
|
|
|
|
|
Balance as of June 30, 2023 |
|
$ |
6,035,200 |
|
|
|
|
|
|
Intangible assets consist of the following:
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
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| |
|
|
|
|
|
|
|
|
|
|
|
|
Trademarks |
|
|
5-10 Years |
|
|
$ |
2,320,000 |
|
|
$ |
(448,673 |
) |
|
$ |
1,871,327 |
|
Noncompete agreements |
|
|
5 Years |
|
|
|
990,000 |
|
|
|
(445,500 |
) |
|
|
544,500 |
|
Customer relationships |
|
|
5-7 Years |
|
|
|
3,760,000 |
|
|
|
(1,050,572 |
) |
|
|
2,709,428 |
|
Patents and patent applications |
|
|
(*) |
|
|
|
650,450 |
|
|
|
— |
|
|
|
650,450 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
7,720,450 |
|
|
$ |
(1,944,745 |
) |
|
$ |
5,775,705 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
Trademarks |
|
|
5-10 Years |
|
|
$ |
2,320,000 |
|
|
$ |
(292,671 |
) |
|
$ |
2,027,329 |
|
Noncompete agreements |
|
|
5 Years |
|
|
|
990,000 |
|
|
|
(346,500 |
) |
|
|
643,500 |
|
Customer relationships |
|
|
5-7 Years |
|
|
|
3,760,000 |
|
|
|
(758,000 |
) |
|
|
3,002,000 |
|
Patents and patent applications |
|
|
(*) |
|
|
|
650,450 |
|
|
|
— |
|
|
|
650,450 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
7,720,450 |
|
|
$ |
(1,397,171 |
) |
|
$ |
6,323,279 |
|
|
|
|
|
|
|
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|
| (*) |
Patents have yet to be approved by the United States Patent and Trademark Office. Useful life is determined upon placement into service after approval. Amortization expense was $547,574 and $383,571 for the six months ended June 30, 2023 and 2022, respectively. Amortization expense was $273,787 and $166,213 for the three months ended June 30, 2023 and 2022, respectively. |
|
NOTE 7 – GOODWILL AND INTANGIBLE ASSETS Goodwill consists of the followi ng :
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|
|
|
|
| |
|
|
|
Balance as of December 31, 2021 |
|
$ |
2,382,917 |
|
Acquisition |
|
|
3,454,143 |
|
|
|
|
|
|
Balance as of December 31, 2022 |
|
$ |
5,837,060 |
|
|
|
|
|
|
Intangible assets consist of the following:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
Trademarks |
|
|
5-10 Years |
|
|
$ |
2,320,000 |
|
|
$ |
(292,671 |
) |
|
$ |
2,027,329 |
|
Noncompete agreements |
|
|
5 Years |
|
|
|
990,000 |
|
|
|
(346,500 |
) |
|
|
643,500 |
|
Customer relationships |
|
|
5-7 Years |
|
|
|
3,760,000 |
|
|
|
(758,000 |
) |
|
|
3,002,000 |
|
Patents and patent applications |
|
|
(*) |
|
|
|
650,450 |
|
|
|
— |
|
|
|
650,450 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
7,720,450 |
|
|
$ |
(1,397,171 |
) |
|
$ |
6,323,279 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
| |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
Trademarks |
|
|
10 years |
|
|
$ |
1,520,000 |
|
|
$ |
(114,000 |
) |
|
$ |
1,406,000 |
|
Noncompete agreements |
|
|
5 Years |
|
|
|
990,000 |
|
|
|
(148,500 |
) |
|
|
841,500 |
|
Customer relationships |
|
|
7 Years |
|
|
|
2,920,000 |
|
|
|
(312,857 |
) |
|
|
2,607,143 |
|
Patents and patent applications |
|
|
(*) |
|
|
|
653,050 |
|
|
|
— |
|
|
|
653,050 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
6,083,050 |
|
|
$ |
(575,357 |
) |
|
$ |
5,507,693 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (*) |
Patents have yet to be approved by US Patent Office. Useful life is determined upon placement into service after approval. |
Amortization expense was $821,814 and 575,357 for the year ended December 31, 2022 and 2021, respectively.
Estimated amortization for trademarks, intangible assets and customer relationships for future periods is as follows:
|
|
|
|
|
|
|
|
|
2023 |
|
$ |
1,095,143 |
|
2024 |
|
|
1,095,143 |
|
2025 |
|
|
1,095,143 |
|
2026 |
|
|
946,643 |
|
2027 |
|
|
842,476 |
|
Thereafter |
|
|
598,282 |
|
Assets not placed in services |
|
|
650,450 |
|
|
|
|
|
|
|
|
$ |
6,323,279 |
|
|
|
|
|
|
|