Goodwill and Intangible Assets

3 Months Ended

Mar. 31, 2023

Goodwill and Intangible Assets

Goodwill and Intangible Assets

9. Goodwill and Intangible Assets

Goodwill consisted of the following:

The Company has recorded goodwill of $5,811,578 as of March 31, 2023. There were no changes in the carrying amount of goodwill during the three month period ended March 31, 2023

Intangible assets consists of the following:

	MARCH 31, 2023
	Gross Carrying		Accumulated			Net Book
	Amount		Amortization			Value
	(Unaudited)
Customer Relationships	$	2,392,000	$	(358,800	)	$	2,033,200
Channel Relationships		2,628,080		(1,562,248	)		1,065,832
Internally Developed Software		5,948,518		(2,922,146	)		3,026,372
Trade Name and Trademarks		1,330,472		(276,670	)		1,053,802
	$	12,299,070	$	(5,119,864	)	$	7,179,206

	DECEMBER 31, 2022
	Gross Carrying		Accumulated			Net Book
	Amount		Amortization			Value
Customer Relationships	$	2,392,000	$	(299,000	)	$	2,093,000
Channel Relationships		2,628,080		(1,518,446	)		1,109,634
Internally Developed Software		5,665,957		(2,546,407	)		3,119,550
Trade Name and Trademarks		1,330,472		(254,496	)		1,075,976
	$	12,016,509	$	(4,618,349	)	$	7,398,160

For the three month period ended March 31, 2023, the Company capitalized $453,300 of internally developed software costs, primarily associated with upgrading our ITMS™ (Intelligent Technology Management System), secure identity management technology and secure network operations center of which $280,220 was transferred from capital work in progress to internally developed software during the period. Capital work in progress is included in other long-term assets in the consolidated balance sheet.

For the three month period ended March 31, 2022, the Company capitalized $820,000 of internally developed software costs, primarily associated with upgrading our ITMS™ (Intelligent Telecommunications Management System), secure identity management technology and network operations center of which $243,500 was transferred from capital work in progress to internally developed software and $316,900 was transferred from capital work in progress to property and equipment during the period.

There were no disposals of intangible assets during the three month period ended March 31, 2023.

The aggregate amortization expense recorded for the three month periods ended March 31, 2023 and 2022 were approximately $501,100 and $286,700, respectively.

As of March 31, 2023, estimated annual amortization for our intangible assets is approximately:

Remainder of 2023	$	1,497,301
2024		1,797,411
2025		1,123,850
2026		526,714
2027		511,170
Thereafter		1,722,760
Total	$	7,179,206