Goodwill and Other Intangible Assets

9 Months Ended

Sep. 30, 2024

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

8. Goodwill and Other Intangible Assets.

The following table summarizes the changes in goodwill:

Balance as of January 1, 2024	$	-
Goodwill resulting from the Bloomia Acquisition		10,122,000
Measurement period adjustment		352,000
Balance as of September 30, 2024	$	10,474,000

During the nine months ended September 30, 2024, the Company recorded a measurement period adjustment which increased goodwill by $352,000. This measurement period adjustment resulted from a remeasurement of acquired payroll taxes payable, other accruals, inventory and property and equipment. 

Other intangible assets and related amortization are as follows at September 30, 2024:

	Carrying		Useful Life		Accumulated		Net Carrying
	Amount		(Years)		Amortization		Amount
Tradename	$	8,570,000	Indefinite		$	-	$	8,570,000
Customer relationships		18,300,000		12		920,000		17,380,000
	$	26,870,000			$	920,000	$	25,950,000

For the three and nine months ended September 30, 2024, amortization of intangible assets expensed to operations was $381,000 and $920,000, respectively. The weighted average remaining amortization period for intangible assets as of September 30, 2024 is approximately 11.4 years.

Remaining estimated aggregate annual amortization expense is as follows at: 

	September 30, 2024
Remainder of 2024	$	381,000
2025		1,525,000
2026		1,525,000
2027		1,525,000
2028		1,525,000
Thereafter		10,899,000
Total	$	17,380,000