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Goodwill and Intangible Assets
 12 Months Ended
Dec. 31, 2024
Goodwill and Intangible Assets [Abstract]  
Goodwill and Intangible Assets

Note 8 - Goodwill and Intangible Assets

 

Goodwill and intangible assets are primarily the result of business acquisitions. Goodwill represents the excess of the cost of an acquisition over the fair value of the net identifiable assets acquired and liabilities assumed. Goodwill is tested for impairment at the reporting unit level at least annually, as of December 31, or more frequently when events occur and circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying amount.

 

During the measurement period, the Company recorded an adjustment of $138,438 related to the Be My Neighbor acquisition, reflecting refinements in the fair value assessment of acquired liabilities.

 

Additionally, the Company assessed the Rhove acquisition for impairment and determined that an impairment charge was necessary. The impairment evaluation considered factors such as changes in expected future cash flows and market conditions affecting the acquired assets. The impairment expense has been recognized in the financial statements accordingly.

 

Changes in the carrying amount of goodwill were as follows:

 

   Technology Services   Rental Business   Total 
Balance at January 1, 2024  $
-
   $17,337,739   $17,337,739 
Goodwill acquired, net of purchase price adjustments (1)   4,072,728    
-
    4,072,728 
Goodwill impairment   
-
    (17,337,739)   (17,337,739)
Goodwill measurement period adjustment   138,438    
-
    138,438 
Balance at December 31, 2024  $4,211,166   $
-
   $4,211,166 

 

(1)Includes goodwill related to Naamche, AiChat, Be My Neighbor, and Hyperfast acquisitions. See “Note 5 – Business Combinations” for further information.

 

The components of intangible assets, all of which are finite-lived, are as follows:

 

   December 31, 2024   December 31, 2023 
   Gross
carrying
amount		   Additions   Impaired   Accumulated
amortization		   Net
carrying
value		   Gross
carrying
amount		   Accumulated
amortization		   Net
carrying
value		 
Definite-life Intangibles:                                
Developed technology  $1,119,000   $1,701,015   $(688,886)  $590,619   $1,540,510   $1,119,000   $235,860   $883,140 
Trademarks and trade names   34,000    1,714,500    
-
    71,333    1,669,283    34,000    13,134    20,866 
Customer relationships   104,000    80,500    (77,885)   38,887    75,613    104,000    10,044    93,956 
Total  $1,257,000   $3,496,015   $(766,771)  $700,839   $3,285,406   $1,257,000   $259,038   $997,962 

 

Following this reclassification, during the fourth quarter of 2024, the Company capitalized an additional $150,372 in significant platform improvements to the reAlpha platform (Claire). These improvements were enhancements without significant changes to the platform’s useful life, rather than costs incurred during the application development stage.

The Company recorded amortization expenses of $441,800 and $259,038 for the year ended December 31, 2024, and December 31, 2023, respectively.

 

The following table outlines the estimated future amortization expense related to intangible assets held as of December 31, 2024:

 

Years Ending December 31:  Amount 
2025   473,256 
2026   473,256 
2027   473,256 
2028   473,256 
2029   330,063 
Thereafter   1,062,319 
Total  $3,285,406