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GOODWILL AND OTHER INTANGIBLE ASSETS | 3 Months Ended
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Mar. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract] |
GOODWILL AND OTHER INTANGIBLE ASSETS | NOTE 6. GOODWILL AND OTHER INTANGIBLE ASSETS Effective January 1, 2020 the Company reorganized its reporting structure into a single operating unit. All of the acquisitions made by the Company are in one industry insurance agencies. These agencies operate in a very similar economic and regulatory environment. The Company has one executive who is responsible for the operations of the insurance agencies. This executive reports directly to the Chief Financial Officer (“CFO”) on a quarterly basis. Additionally, the CFO who is responsible for the strategic direction of the Company reviews the operations of the collective insurance agency business as opposed to an office-by-office view. In accordance with guidance in ASC 350-20-35-45, all the Company’s goodwill will be reassigned to a single reporting unit. For the year ended December 31, 2021 the Company assessed goodwill in accordance with ASC 350-20-35-3, analyzing the relevant qualitative factors. The Company noted that it was not more likely than not that the fair value of the reporting unit is less than its carrying amount, thus determining that the two-step goodwill impairment test was not required. Pursuant to the qualitative assessment, the Company concluded that goodwill was not impaired and this conclusion remains reasonable as of March 31, 2022. The following table rolls forward the Company’s goodwill balance for the periods ending March 31, 2022 and December 31, 2021. As discussed in Note 2 - Prior Period Adjustments, a $(503,345) adjustment was identified for goodwill which impacted the closing December 31, 2020 balance in the same amount. Accordingly, the December 31, 2020 balance is adjusted in the following table from the originally reported balance of $9,265,070 to $8,761,725. SCHEDULE OF IMPAIRMENT OF GOODWILL
|  | Goodwill |
December 31, 2020 |  | $ | 8,761,725 |
Goodwill recognized in connection with Kush acquisition on May 1, 2021 |  | $ | 1,288,552 |
December 31, 2021 |  | $ | 10,050,277 |
Goodwill recognized in connection with Medigap acquisition on January 10, 2022 |  | $ | 19,199,008 |
March 31, 2022 |  | $ | 29,249,285 |
The following table sets forth the major categories of the Company’s intangible assets and the weighted-average remaining amortization period as of March 31, 2022: SCHEDULE OF INTANGIBLE ASSETS AND WEIGHTED-AVERAGE REMAINING AMORTIZATION PERIOD
|  | Weighted Average Remaining Amortization period (Years) |  |  | Gross Carrying Amount |  |  | Accumulated Amortization |  |  | Net Carrying Amount |
Trade name and trademarks |  |  | 5.1 |  |  | $ | 2,117,475 |  |  | $ | (701,666 | ) |  | $ | 1,415,809 |
Internally developed software |  |  | 4.4 |  |  |  | 881,586 |  |  |  | (67,682 | ) |  |  | 813,904 |
Customer relationships |  |  | 9.7 |  |  |  | 8,787,290 |  |  |  | (1,239,562 | ) |  |  | 7,547,728 |
Purchased software |  |  | 0.3 |  |  |  | 562,327 |  |  |  | (499,846 | ) |  |  | 62,481 |
Video Production Assets |  |  | 0.8 |  |  |  | 50,000 |  |  |  | (9,863 | ) |  |  | 40,137 |
Non-competition agreements |  |  | 2.6 |  |  |  | 3,504,809 |  |  |  | (1,653,617 | ) |  |  | 1,851,192 |
Contracts Backlog |  |  | 0.8 |  |  |  | 210,000 |  |  |  | (46,028 | ) |  |  | 163,972 |
|  |  |  |  |  | $ | 16,113,487 |  |  | $ | (4,218,264 | ) |  | $ | 11,895,223 |
The following table sets forth the major categories of the Company’s intangible assets and the weighted-average remaining amortization period as of December 31, 2021:
|  | Weighted Average Remaining Amortization period (Years) |  |  | Gross Carrying Amount |  |  | Accumulated Amortization |  |  | Net Carrying Amount |
Trade name and trademarks |  |  | 3.5 |  |  | $ | 1,777,475 |  |  | $ | (609,822 | ) |  | $ | 1,167,653 |
Internally developed software |  |  | 4.7 |  |  |  | 595,351 |  |  |  | (28,443 | ) |  |  | 566,908 |
Customer relationships |  |  | 7.7 |  |  |  | 4,237,290 |  |  |  | (1,048,726 | ) |  |  | 3,188,564 |
Purchased software |  |  | 0.6 |  |  |  | 562,327 |  |  |  | (452,985 | ) |  |  | 109,342 |
Video Production Assets |  |  | 1.0 |  |  |  | 20,000 |  |  |  | - |  |  |  | 20,000 |
Non-competition agreements |  |  | 2.9 |  |  |  | 3,504,809 |  |  |  | (1,478,376 | ) |  |  | 2,026,433 |
|  |  |  |  |  | $ | 10,697,252 |  |  | $ | (3,618,352 | ) |  | $ | 7,078,900 |
Amortization expense, as adjusted for certain software reclassifications is, $599,911 and $283,569 for the three months ended March 31, 2022 and 2021, respectively. The following table reflects expected amortization expense as of March 31, 2022, for each of the following five years and thereafter: SCHEDULE OF AMORTIZATION EXPENSE OF ACQUIRED INTANGIBLES ASSETS
Years ending December 31, |  | Amortization Expense |
2022 (remainder of year) |  | $ | 1,823,253 |
2023 |  |  | 2,064,243 |
2024 |  |  | 1,771,983 |
2025 |  |  | 1,325,184 |
2026 |  |  | 1,064,552 |
Thereafter |  |  | 3,846,008 |
Total |  | $ | 11,895,223 |

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