Intangible assets

12 Months Ended

Dec. 31, 2023

Intangible assets

Intangible assets

9. Intangible assets

The Company’s purchase transactions for Aerex and PERC identified certain intangible assets. The remaining intangible assets and their respective useful lives are as follows: trade names (15 years) and facility management contracts (6 years).

Effective October 2023, the Company purchased a 100% ownership interest in REC. The purchase transaction identified certain intangible assets with a fair value of $1,108,390 and useful lives as follows: non-compete (5 years), trade name (15 years) and customer relationships (15 years).

The costs and accumulated amortization for these assets were as follows:

	December 31,
	2023		2022
Cost
Non-compete agreements	$	268,590	$	—
Trade names		3,096,900		2,700,000
Customer relationships		442,900		—
Facility management contracts		2,200,000		2,200,000
		6,008,390		4,900,000
Accumulated amortization
Non-compete agreements		(13,430)		—
Trade names		(1,106,615)		(920,000)
Customer relationships		(7,382)		—
Facility management contracts		(1,527,778)		(1,161,112)
		(2,655,205)		(2,081,112)
Intangible assets, net	$	3,353,185	$	2,818,888

Amortization of intangible assets for each of the next five years and thereafter is expected to be as follows:

2024	$	656,371
2025		595,260
2026		289,705
2027		289,705
2028		276,275
Thereafter		1,245,869
	$	3,353,185

Amortization expense was $574,093 and $582,778 for the years ended December 31, 2023 and 2022, respectively.