Intangible Assets

12 Months Ended

Dec. 31, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

Intangible Assets

Intangible assets. The following tables provide detail of the Company’s intangible assets:

As of December 31, 2024	Weighted Average Useful Life (in years)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Amortizing intangible assets:
Member relationships	15	$	18,491,000	$	3,248,500	$	15,242,500
Trademarks	7	474,000		186,219		287,781
Total		$	18,965,000	$	3,434,719	$	15,530,281
As of December 31, 2023
Amortizing intangible assets:
Member relationships	15	$	18,491,000	$	2,015,772	$	16,475,228
Management contracts	16	2,021,000		221,047		1,799,953
Customer contracts	15	914,000		106,633		807,367
Trademarks	7-12	1,426,795		262,557		1,164,238
PHP technology	5	409,000		143,150		265,850
Total		$	23,261,795	$	2,749,159	$	20,512,636

Member relationships and trademarks are associated with existing entities in the population health management division.

Amortization of intangible assets for the years ended December 31, 2024, 2023 and 2022 totaled $1.5 million, $1.6 million and $1.2 million, respectively.

Certain intangible assets were impaired upon the sale of Procare and sale of Clinigence Health, totaling $3.9 million for the year ended December 31, 2024. See Note 3 for discussion over the sale of Procare and sale of Clinigence.

Due to the closure of a facility, we recorded an impairment loss of $0.7 million for the year ended December 31, 2023 as the carrying value of the facility’s license was greater than the license’s fair value. The following is the estimated aggregated amortization expense for each of the five succeeding fiscal years:

Year ended December 31,	Amount
2025	$	1,300,442
2026	1,300,442
2027	1,300,442
2028	1,300,442
2029	1,249,656
Thereafter	9,078,857
Total Intangible Assets	$	15,530,281

Goodwill. The carrying amount of goodwill, by operating segment is as follows:

	Hospital Division		Population Health Management Division		Total
Balance as of December 31, 2023
Goodwill	$	1,139,297	$	415,201,301	$	416,340,598
Accumulated impairment losses	(1,139,297)		(398,135,038)		(399,274,335)
Goodwill, net, as of December 31, 2023	—		17,066,263		17,066,263
Purchase accounting adjustments	—		502,864		502,864
Impairment of goodwill	—		(3,197,391)		(3,197,391)
Derecognition of goodwill	—		(453,017)		(453,017)
Goodwill, net, as of December 31, 2024	—		13,918,719		13,918,719
Goodwill	1,139,297		415,251,148		416,390,445
Accumulated impairment losses	(1,139,297)		(401,332,429)		(402,471,726)
Goodwill, net, as of December 31, 2024	$	—	$	13,918,719	$	13,918,719

The purchase accounting adjustments of $0.5 million to the carrying amount of goodwill in the Population Health Management Division for the year ended December 31, 2024 relates to the acquisition of two Florida based IPAs in the third quarter of 2023 for which the allocation of goodwill is subject to revision based on final allocation of the purchase price to the identifiable assets and liabilities acquired.

The impairment of goodwill of $3.2 million and the derecognition of goodwill of $0.5 million, both for the Population Health Management Division, for the year ended December 31, 2024 related to the sale of Procare Health, Inc., a wholly-owned subsidiary of Nutex. Procare was considered part of the Population Health Management Division. Prior to the sale of Procare, the Company recognized a goodwill impairment amount of $3.2 million. On the sale of Procare, the Company recognized the derecognition of goodwill of $0.5 million based on the remaining carrying amount of goodwill for the Procare business after impairment. See Note 3 for Procare sale.

Due to the sale of Procare, the Company tested for impairment the remaining goodwill in the Population Health Management Division of $13.9 million. On June 30, 2024, we determined that the fair value of our Population Health Management Division was greater than its carrying value. Therefore, no additional goodwill impairment was recognized for the quarter ended June 30, 2024. Additionally, the Company tested for annual goodwill impairment on October 1, 2024. No additional goodwill impairment was recognized for the year ended December 31, 2024.