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Intellectual Property, Net and Goodwill
 9 Months Ended
Sep. 30, 2023
Intellectual Property Net And Goodwill  
Intellectual Property, Net and Goodwill

Note 5. Intellectual Property, Net and Goodwill

 

The following table sets forth the components of the Company’s intellectual property at September 30, 2023 and December 31, 2022:

 

                                               
    September 30,
2023		     December 31,
2022		  
    Gross
Carrying
Amount		     Accumulated
Amortization		     Net Book
Value		     Gross
Carrying
Amount		     Accumulated
Amortization		     Net Book
Value		  
Extraction Technology patents   $ 113,430     $ 17,237     $ 96,193     $ 113,430     $ 12,233     $ 101,197  
Extraction Technology     16,385,157       7,100,235       9,284,922       16,385,157       6,485,791       9,899,366  
Acquired crude oil contracts     16,788,760       2,080,019       14,708,741       19,095,420       844,930       18,250,490  
Total Intellectual property   $ 33,287,347     $ 9,197,491     $ 24,089,856     $ 35,594,007     $ 7,342,954     $ 28,251,053  

 

The changes in the carrying amount of goodwill are as follows:

 

       
    Goodwill  
January 1, 2021   $ -  
Acquisition     14,984,768  
September 30, 2023   $ 14,984,768  

 

There were no changes in goodwill for the nine months ended September 30, 2023.

 

On August 1, 2022, the Company closed a Membership Interest Purchase Agreement, (the “MIPA”), with Jorgan Development, LLC, and JBAH Holdings, LLC, as the equity holders of Silver Fuels Delhi, LLC, a Louisiana limited liability company (“SFD”) and White Claw Colorado City, LLC, a Texas limited liability company (“WCCC”) whereby, the Company acquired all of the issued and outstanding membership interests in each of SFD and WCCC making SFD and WCCC wholly owned subsidiaries of the Company. The purchase price for the Membership Interests is approximately $32.9 million, after post-closing adjustments.

 

Management hired a valuation expert who performed a valuation study to calculate the fair value of the acquired assets, assumed liabilities and goodwill. Based on the valuation study, the fair values of goodwill and the acquired contracts were $14,984,768 and $16,788,760 on August 1, 2022.

 

Amortization expense for the nine months ended September 30, 2023 and 2022 was $2,157,993 and $1,553,198.