GOODWILL AND INTANGIBLE ASSETS

3 Months Ended

Dec. 31, 2021

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS

13. GOODWILL AND INTANGIBLE ASSETS

The Company follows the guidance of ASC 350-20-35-3 Intangibles-Goodwill and Other (Topic 350) which requires a company to record an impairment charge based on the excess of a reporting unit’s carrying amount of goodwill over its fair value. Under

the current guidance, companies can first choose to assess any impairment based on qualitative factors (Step 0). If a company fails this test or decides to bypass this step, it must proceed with a two-step quantitative assessment of goodwill impairment. The Company did not have a goodwill impairment at December 31, 2021.

A table of the Company’s goodwill is below:

	September 30,		December 31,
	2021		2021
Beginning balance	$	—	$	1,814,317
Acquired		1,814,317		—
Impairment		—		—
Ending balance	$	1,814,317	$	1,814,317

A table of the Company’s intangible assets subject to amortization at December 31, 2021, is below:

				Accumulated								Amortization and
	Remaining Life at			Amortization at		Accumulated		Amortization and		Amortization and		Impairment Three
	December 31,			December 31,		Impairment at		Impairment at		Impairment of		Months Ended		Net Book
Intangible assets:	2021	Original Cost		2021		December 31, 2021		December 31, 2021		September 30, 2021		December 31,		Value
West Virginia Pipeline
Customer Relationships	108 months	$	2,209,724	$	220,967	$	—	$	220,967	$	165,725	$	55,242	$	1,988,757
Tradename	108 months		263,584		26,363		—		26,363		19,772		6,591		237,221
Non-competes	12 months		83,203		41,603		—		41,603		31,202		10,401		41,600
Revolt Energy
Employment agreement/non-compete	28 months		100,000		18,056		43,056		61,112		13,889		47,223		38,888
Total intangible assets		$	2,656,511	$	306,989	$	43,056	$	350,045	$	230,588	$	119,457	$	2,306,466

The amortization and impairment on identifiable intangible assets for the three months ended December 31, 2021, and 2020 was $119,000 and $0, respectively. The $43,000 intangible impairment charge for the three months ended December 31, 2021, was the result of a mutual parting of ways with a former employee.

Amortization expense associated with the identifiable intangible assets is expected to be as follows:

	Amortization Expense
January 1-December 31, 2022	$	305,600
January 1-December 31, 2023		264,000
January 1-December 31, 2024		252,884
January 1-December 31, 2025		247,332
January 1-December 31, 2026		247,332
After		989,318
Total	$	2,306,466