Goodwill and Other Intangible Assets

3 Months Ended

Mar. 31, 2022

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 were as follows:

March 31, 2022 (Unaudited)	Estimated Useful Life	Gross Carrying Amount		Accumulated Amortization		Net
Finite lived intangible assets:
Customer relationships	5 years	$	39,250,000	$	3,921,354	$	35,328,646
Software	7 years		2,075,995		1,505,820		570,175
Trademarks	7 years		2,002,869		155,366		1,847,503
Non-compete agreements	3 years		2,250,000		279,444		1,970,556
Total finite lived intangible assets		$	45,578,864	$	5,861,984	$	39,716,880

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

	Carrying Amount
Changes in goodwill:
Goodwill balance at December 31, 2021	$	80,621,503
Addition related to acquisition		543,397
Goodwill balance at March 31, 2022	$	81,164,900

We compute amortization using the straight-line method over the useful lives of the finite lived intangible assets. Amortization expense related to finite lived intangible assets was $2,263,637 and $365,524 for the three months ended March 31, 2022 and 2021, respectively.

We have no indefinite-lived intangible assets other than goodwill. $65.7 million of the goodwill is not deductible for tax purposes, while $15.5 million of goodwill is deductible over its tax-basis life.

We performed our annual impairment analysis for goodwill and other intangible assets in the third quarter of 2021 with no impairment recorded.