| Goodwill and Intangible Assets |
NOTE 7 – GOODWILL AND INTANGIBLE ASSETS
Goodwill consists of the following:
|
|
|
|
|
|
|
Amount |
|
Balance as of December 31, 2021 |
|
$ |
2,382,917 |
|
Acquisition |
|
|
3,454,143 |
|
Balance as of December 31, 2022 |
|
$ |
5,837,060 |
|
NOTE 7 – GOODWILL AND INTANGIBLE ASSETS (CONTINUED)
Intangible assets consist of the following:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2022 |
|
|
|
Useful |
|
Gross Carrying |
|
|
Accumulated |
|
|
Net Carrying |
|
|
|
Life |
|
Amount |
|
|
Amortization |
|
|
Amount |
|
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2021 |
|
|
|
Useful |
|
Gross Carrying |
|
|
Accumulated |
|
|
Net Carrying |
|
|
|
Life |
|
Amount |
|
|
Amortization |
|
|
Amount |
|
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:
|
|
|
|
|
Year Ended December 31, |
|
|
|
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 |
|
|