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Goodwill and Intangible Assets

3 Months Ended

Mar. 31, 2024

7. Goodwill and Intangible Assets

The Company has recorded goodwill of $5,811,578 as of March 31, 2024 and December 31, 2023. There were no changes in the carrying amount of goodwill during the three month period ended March 31, 2024.

Intangible assets consists of the following:

MARCH 31, 2024

Gross Carrying

Accumulated

Net Book

Amount

Amortization

Value

Customer Relationships

2,392,000

(598,000

)

1,794,000

Channel Relationships

2,628,080

(1,737,453

)

890,627

Internally Developed Software

7,871,341

(4,769,140

)

3,102,201

Trade Name and Trademarks

1,330,472

(365,368

)

965,104

14,221,893

(7,469,961

)

6,751,932

	DECEMBER 31, 2023

	Gross Carrying		Accumulated			Net Book
	Amount		Amortization			Value

Customer Relationships	$	2,392,000	$	(538,200	)	$	1,853,800
Channel Relationships		2,628,080		(1,693,652	)		934,428
Internally Developed Software		7,892,045		(4,331,203	)		3,560,842
Trade Name and Trademarks		1,330,472		(343,194	)		987,278

	$	14,242,597	$	(6,906,249	)	$	7,336,348

The Company did not capitalize any internally developed software costs for the three month period ended March 31, 2024.

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.

There were no disposals of intangible assets during the three month period ended March 31, 2024 and 2023.

The aggregate amortization expense recorded for the three month periods ended March 31, 2024 and 2023 were approximately $573,100 and $501,100 respectively.

As of March 31, 2024, estimated annual amortization for our intangible assets is approximately:

Remainder of 2024	$	1,776,442
2025		1,731,939
2026		922,517
2027		557,950
2028		503,106
Thereafter		1,259,978
Total	$	6,751,932