Intangible Assets and Goodwill

9 Months Ended

Sep. 30, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets and Goodwill

Note 8 – Intangible Assets and Goodwill

Components of intangible assets are as follows:

	September 30, 2024			December 31, 2023
Tradename	$	253,000		$	253,000
Noncompetition agreement		3,961,000			3,961,000
Goodwill		5,878,986			5,878,986
Less: accumulated amortization		(733,694	)		(120,569	)
Total intangible assets	$	9,359,292		$	9,972,417

As part of the WFI acquisition, that closed on August 10, 2023, the Company acquired a tradename valued at $253,000, noncompetition agreements valued at $3,961,000 and goodwill of $5,878,986 which includes assembled workforce valued at $34,000. The tradename was deemed to have a useful life of 10 years. The noncompetition agreements were deemed to have a useful life of 5 years. The useful life of the noncompetition agreements was based on the noncompetition clauses in the FLOW Equity Purchase Agreement and WFRSA Asset Purchase Agreement, each of which provides that none of the sellers will engage in any business or services that compete with the respective businesses for 5 years.

During the three months ended September 30, 2024, and 2023, the Company recorded amortization expenses related to intangible assets of $204,375 and $0, respectively.

During the nine months ended September 30, 2024, and 2023, the Company recorded amortization expenses related to intangible assets of $613,125 and $0, respectively.

Goodwill has an indefinite useful life and is therefore not amortized. The Company reviewed and found no indicators for impairment of the intangible assets related to the acquisition of WFI as of September 30, 2024.