Goodwill and Intangible Assets

9 Months Ended

Sep. 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 September 30, 2024 and December 31, 2023. There were no changes in the carrying amount of goodwill during the nine month period ended September 30, 2024.

Intangible assets consists of the following:

	SEPTEMBER 30, 2024
	Gross Carrying		Accumulated			Net Book
	Amount		Amortization			Value
	(Unaudited)
Customer Relationships	$	2,392,000	$	(717,600	)	$	1,674,400
Channel Relationships		2,628,080		(1,825,055	)		803,025
Internally Developed Software		7,902,508		(5,745,690	)		2,156,818
Trade Name and Trademarks		1,330,472		(409,718	)		920,754
	$	14,253,060	$	(8,698,063	)	$	5,554,997

	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 nine month periods ended September 30, 2024.

For the three and nine month periods ended September 30, 2023, the Company capitalized $139,600 and $832,400, respectively, of internally developed software costs, primarily associated with upgrading its ITMS™ (Intelligent Technology Management System), secure identity management technology and secure network operations center of which $509,700 was transferred from capital work in progress to internally developed software during the nine month period. Capital work in progress is included in other long-term assets in the condensed consolidated balance sheet.

There were no disposals of intangible assets during the three and nine month period ended September 30, 2024 and 2023.

The aggregate amortization expense recorded for the three and nine month periods ended September 30, 2024 was approximately $558,600 and $1,782,100, respectively. The aggregate amortization expense recorded for the three and nine month periods ended September 30, 2023 was approximately $526,300 and $1,533,900, respectively.

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

Remainder of 2024	$	620,100
2025		1,636,500
2026		922,517
2027		612,794
2028		503,106
Thereafter		1,259,980
Total	$	5,554,997