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INTANGIBLE ASSETS AND GOODWILL
 9 Months Ended
Sep. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
INTANGIBLE ASSETS AND GOODWILL

NOTE 6 – INTANGIBLE ASSETS AND GOODWILL

 

The following table summarizes the changes in goodwill during the nine months ended September 30, 2022:

 

Balance December 31, 2021  $16,792,535 
Acquisition of goodwill   59,430,213 
Foreign currency translation adjustment   (2,127,968)
Ending balance, September 30, 2022(1)  $74,094,780 

 

 

(1)As of September 30, 2022, we had not obtained a third-party valuation for the acquisitions of CUATROi and NLT Secure. As such, the purchase price allocation disclosed in this Quarterly Report for CUATROi and NLT Secure may change, and, therefore, goodwill from the acquisitions may change.

 

The following table summarizes the identifiable intangible assets as of September 30, 2022 and December 31, 2021:

 

   Useful life  September 30, 2022   December 31, 2021 
Tradenames – trademarks  1-5 years  $4,649,220   $3,010,100 
Customer base  5 - 10 years   1,522,131    1,650,000 
Non-compete agreements  2 - 5 years   759,850    675,500 
Intellectual property/technology  5 - 10 years   2,605,406    1,528,000 
Identifiable intangible assets        9,536,607    6,863,600 
Less: accumulated amortization      (1,886,457)   (323,331)
Total     $7,650,150   $6,540,269 

 

The weighted average remaining useful life of identifiable amortizable intangible assets remaining is 4.23 years.

 

During the third quarter of 2022, as the result of rebranding and expected future marketing of our products and services, we made the decision to phase out certain indefinite-lived tradenames from acquired subsidiaries. We believe the phase-out and integration of the rebranding and marketing will be completed no later than June 30, 2024, and expect to recognize $1,211,800 of amortization expense from tradenames previously held as indefinite-lived.

 

Amortization of identifiable intangible assets for the three months ended September 30, 2022 and 2021 was $797,703 and $40,506, respectively, and was $1,615,170 and $110,495 for the nine months ended September 30, 2022 and 2021, respectively.

 

The below table summarizes the future amortization expense for the remainder of 2022 and the next four years thereafter:

 

      
2022 (remainder of)  $667,397 
2023   2,341,057 
2024   1,623,017 
2025   1,434,081 
2026   1,334,585 
Thereafter   250,013 
Finite-lived intangible assets, net   $7,650,150