GOODWILL AND INTANGIBLE ASSETS

9 Months Ended

Sep. 30, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND INTANGIBLE ASSETS

NOTE 5: GOODWILL AND INTANGIBLE ASSETS

The following is a summary of goodwill attributable to each business combination:

	September 30,		December 31
	2024		2023
Bailey	$	3,158,123	$	3,158,123
Stateside		2,104,056		2,104,056
Sundry		3,711,322		3,711,322
	$	8,973,501	$	8,973,501

The following table summarizes information relating to the Company’s identifiable intangible assets as of September 30, 2024:

	Gross		Accumulated			Carrying
	Amount		Amortization			Value
Amortized:
Customer relationships	$	8,634,560	$	(6,551,861	)	$	2,082,699
	$	8,634,560	$	(6,551,861	)	$	2,082,699
Indefinite-lived:
Brand name		5,241,880		—			5,241,880
	$	13,876,440	$	(6,551,861	)	$	7,324,579

At September 30, 2024, management determined that indicators of impairment existed with regards to the Bailey44 reporting unit. The qualitative assessment was primarily due to reduced revenues of Bailey44 as compared to the Company’s projections, as well as the entity’ liabilities in excess of assets. As such, the Company recorded an impairment to the brand name intangible asset of $600,000.

The Company recorded amortization expense of $618,543 and $719,547 during the three months ended September 30,2024 and 2023, and $2,057,637 and $2,478,824 during the nine months ended September 30, 2024 and 2023, respectively, which is included in general and administrative expenses in the consolidated statements of operations.