Goodwill and Intangible Assets

6 Months Ended

Jun. 30, 2024

Goodwill and Intangible Assets

Goodwill and Intangible Assets

7.     Goodwill and Intangible Assets

The Company has recorded goodwill of $5,811,578 as of June 30, 2024 and December 31, 2023. There were no changes in the carrying amount of goodwill during the six month period ended June 30, 2024.

Intangible assets consists of the following:

	JUNE 30, 2024
	Gross Carrying		Accumulated			Net Book
	Amount		Amortization			Value
	(Unaudited)
Customer Relationships	$	2,392,000	$	(657,800	)	$	1,734,200
Channel Relationships		2,628,080		(1,781,254	)		846,826
Internally Developed Software		7,864,850		(5,290,141	)		2,574,709
Trade Name and Trademarks		1,330,472		(387,543	)		942,929
	$	14,215,402	$	(8,116,738	)	$	6,098,664

	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 and six month periods ended June 30, 2024.

For the three and six month period ended June 30, 2023, the Company capitalized $239,500 and $692,800, respectively, 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 six month 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 and six month period ended June 30, 2024 and 2023.

The aggregate amortization expense recorded for the three and six month periods ended June 30, 2024 was approximately $650,400 and $1,223,500, respectively. The aggregate amortization expense recorded for the three and six month periods ended June 30, 2023 was approximately $506,500 and $1,007,600, respectively.

As of June 30, 2024, estimated annual amortization for our intangible assets is approximately:

Remainder of 2024	$	1,138,418
2025		1,661,850
2026		922,517
2027		612,794
2028		503,106
Thereafter		1,259,979
Total	$	6,098,664