Goodwill and Other Intangible Assets

6 Months Ended

Jun. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

5. Goodwill and Other Intangible Assets

The components of goodwill and other intangible assets were as follows:


June 30, 2022 (Unaudited)	Estimated Useful Life	Gross Carrying Amount		Accumulated Amortization		Net
Finite lived intangible assets:
Customer relationships	5 years	$	39,250,000	$	5,883,854	$	33,366,146
Software	7 years		2,322,800		1,637,614		685,186
Trademarks	7 years		2,006,020		226,731		1,779,289
Non-compete agreements	3 years		2,250,000		466,944		1,783,056
Total finite lived intangible assets		$	45,828,820	$	8,215,143	$	37,613,677


December 31, 2021	Estimated Useful Life	Gross Carrying Amount		Accumulated Amortization		Net
Finite lived intangible assets:
Customer relationships	5 years	$	36,820,000	$	1,999,355	$	34,820,645
Software	7 years		2,030,754		1,416,638		614,116
Trademarks	7 years		1,716,533		87,632		1,628,901
Non-compete agreements	3 years		2,150,000		94,722		2,055,278
Total finite lived intangible assets		$	42,717,287	$	3,598,347	$	39,118,940


	Carrying Amount
Changes in goodwill:
Goodwill balance at December 31, 2021	$	80,621,503
Addition related to acquisition		543,397
RWS purchase price allocation adjustment		1,183,992
Goodwill balance at June 30, 2022	$	82,348,892

We compute amortization using the straight-line method over the useful lives of the finite lived intangible assets. Amortization expense related to finite lived intangible assets was $2,353,159 and $365,605 for the three months ended June 30, 2022 and 2021, respectively. Amortization expense related to finite lived intangible assets was $4,616,795 and $731,129 for the six months ended June 30, 2022 and 2021, respectively.

We have no indefinite-lived intangible assets other than goodwill. $66.8 million of the goodwill is not deductible for tax purposes, while $15.5 million of goodwill is deductible over its tax-basis life.

We performed our annual impairment analysis for goodwill and other intangible assets in the third quarter of 2021 with no impairment recorded.