GOODWILL AND INTANGIBLES, NET

9 Months Ended

Sep. 30, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND INTANGIBLES, NET

NOTE 5 – GOODWILL AND INTANGIBLES, NET

The changes in the carrying amount of the Company’s goodwill were as follows:

	Total
Balance as of December 31, 2022	$	3,601,781
Acquisitions		-
Balance as of December 31, 2023		3,601,781
Acquisitions		-
Balance as of September 30, 2024	$	3,601,781

In connection with the change in reportable operating segments, the Company reassessed goodwill with respect to the change in reportable operating segments as they are presented in this report. Goodwill was recorded in connection with the acquisition of Scendia and is included entirely within the Sanara Surgical segment. The Company’s assessment determined that these changes, or any other matters noted, did not alter the Company’s conclusion that goodwill is not impaired as of September 30, 2024 or for the periods then ended.

The carrying values of the Company’s intangible assets were as follows for the periods presented:

	September 30, 2024							December 31, 2023
			Accumulated							Accumulated
	Cost		Amortization			Net		Cost		Amortization			Net
Amortizable Intangible Assets:
Patents and Other IP	$	38,592,549	$	(4,934,785	)	$	33,657,764	$	38,570,549	$	(3,181,186	)	$	35,389,363
Customer relationships and other		7,947,332		(2,737,675	)		5,209,657		7,947,332		(1,861,887	)		6,085,445
Product Licenses		4,793,879		(1,632,158	)		3,161,721		4,793,879		(1,342,626	)		3,451,253
Total	$	51,333,760	$	(9,304,618	)	$	42,029,142	$	51,311,760	$	(6,385,699	)	$	44,926,061

As of September 30, 2024, the weighted-average amortization period for finite-lived intangible assets was 14.5 years. Amortization expense related to intangible assets was $974,262 and $881,079 for the three months ended September 30, 2024 and 2023, respectively, and $2,918,919 and $2,247,482 for the nine months ended September 30, 2024 and 2023, respectively. The estimated remaining amortization expense as of September 30, 2024 for finite-lived intangible assets is as follows:

Remainder of 2024	$	972,818
2025		3,891,270
2026		3,874,015
2027		3,760,162
2028		3,726,921
2029		3,726,921
Thereafter		22,077,035
Total	$	42,029,142

The Company has reviewed the carrying value of intangible assets and has determined there was no impairment during the nine months ended September 30, 2024 or 2023.