Goodwill and Intangible Assets

3 Months Ended

Mar. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

The following table sets forth the change in the carrying amount of goodwill during the three months ended March 31, 2022:


Balance as of December 31, 2021	$	14,440,683
Acquisitions		2,100,358
Balance as of March 31, 2022	$	16,541,041

In June 2010, the Company acquired all the outstanding shares of capital stock of Thorne Research, which is now a wholly owned subsidiary of the Company. The Company accounted for the transaction as a business combination in accordance with ASC 805, Business Combinations, and recorded the consideration transferred and assets acquired, and liabilities assumed at their fair values, resulting in the recording of goodwill of approximately $14.4 million.

In February 2022, the Company acquired all of the outstanding ownership interest of Nutrativa, which is now a wholly owned subsidiary of the Company. The Company accounted for the transaction as a business combination in accordance with ASC 805, Business Combinations, and recorded the consideration transferred and assets acquired, and liabilities assumed at their fair values, resulting in the recording of goodwill of approximately $2.1 million. See Note 4 for additional information related to the acquisition of Nutrativa.

Finite-lived Intangible Assets

Finite-lived intangible assets are as follows:


	March 31, 2022
	Gross Carrying Value		Accumulated Amortization			Net Carrying Value
Customer relationships	$	6,500,000	$	(3,818,750	)	$	2,681,250
Trade names		8,640,000		(6,993,334	)		1,646,666
Existing technology/reformulations		13,407,923		(2,731,257	)		10,676,666
Research and development formulas		800,000		(800,000	)		—
License agreements		8,966,823		(7,228,981	)		1,737,842
	$	38,314,746	$	(21,572,322	)	$	16,742,424

	December 31, 2021
	Gross Carrying Value		Accumulated Amortization			Net Carrying Value
Customer relationships	$	6,500,000	$	(3,737,500	)	$	2,762,500
Trade names		8,640,000		(6,866,667	)		1,773,333
Existing technology/reformulations		3,207,923		(2,694,590	)		513,333
Research and development formulas		800,000		(800,000	)		—
License agreements		8,591,822		(7,048,672	)		1,543,150
	$	27,739,745	$	(21,147,429	)	$	6,592,316

The Company’s intangible assets include intangible assets acquired through the Thorne Research acquisition in 2010 and the Nutrativa acquisition in 2022. As of March 31, 2022 and December 31, 2021, the net book value of such intangible assets was approximately $15.0 million and $5.0 million, respectively. Intangible assets also include payments under license agreements related to trademarks and content, which had a net book value as of March 31, 2022 and December 31, 2021, of $1.7 million and $1.5 million, respectively.

Amortization expense totaled $425 thousand and $409 thousand for the three months ended March 31, 2022 and 2021, respectively.