Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2021

Goodwill And Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

5. Goodwill and Other Intangible Assets

The components of goodwill and other intangible assets are as follows:

December 31, 2021	Estimated Useful Life	Gross Carrying Amount		Accumulated Amortization		Net
Finite lived intangible assets:
Customer relationships	5 years	$	36,820,000	$	1,999,355	$	34,820,645
Software	7 years		2,030,754		1,416,638		614,116
Trademarks	7 years		1,716,533		87,632		1,628,901
Non-compete agreements	3 years		2,150,000		94,722		2,055,278
Total finite lived intangible assets		$	42,717,287	$	3,598,347	$	39,118,940

December 31, 2020	Estimated Useful Life	Gross Carrying Amount		Accumulated Amortization		Net
Finite lived intangible assets:
Customer relationships	5 years	$	5,480,000	$	218,022	$	5,261,978
Software	7 years		2,153,061		1,285,058		868,003
Trademarks	7 years		410,000		11,651		398,349
Patents	7 years		230,683		230,683		—
Total finite lived intangible assets		$	8,273,744	$	1,745,414	$	6,528,330

	Carrying Amount
Changes in goodwill:
Goodwill balance at December 31, 2020	$	66,310,385
Addition related to current year acquisitions		14,311,118
Goodwill balance at December 31, 2021	$	80,621,503

We compute amortization using the straight-line method over the estimated useful lives of the finite lived intangible assets. The amortization expense related to finite lived intangible assets was $2,280,501 and $1,014,622 for the years ended December 31, 2021 and 2020, respectively. We expect amortization expense to be approximately $8.6 million for the year ending December 31, 2022, approximately $8.5 million for the year ending December 31, 2023, approximately $8.3 million for the year ending December 31, 2024, approximately $7.4 million for the year ending December 31, 2025, approximately $5.9 million for the year ending December 31, 2026, and approximately $430,000 thereafter. We have no indefinite-lived intangible assets other than goodwill. $65.1 million of the goodwill is not deductible for tax purposes, while $15.5 million of goodwill added in the current year and the Green Remedies Acquisition in 2020 is deductible over its tax-basis life. We performed our goodwill impairment analysis in the third quarter of 2021 and 2020 with no impairment recorded in either period.

In 2021, we recorded $6.9 million in goodwill and $25.4 million of intangible assets as part of the RWS acquisition. We recorded an additional $7.4 million in goodwill and $9.4 million of intangible assets as part of three other asset acquisitions during 2021. In October 2020, we recorded $8.1 million in goodwill and $5.9 million of intangible assets as part of the Green Remedies Acquisition. See Note 3 for more information on the acquisitions.