Intangibles

9 Months Ended

Sep. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible assets consisted of the following as of September 30, 2023 and December 31, 2022:


	September 30, 2023
	Estimated Useful Life (Years)	Gross Carrying Amount		Additions		Accumulated Amortization		Net Carrying Amount
Patents	15 years	$	62,823	$	20,461	$	(14,195)	$	69,089
Computer software	5 years	247,828		—		(233,928)		13,900
Operating licenses	Indefinite	8,799,004		600,000		—		9,399,004
Internally developed software	4-5 years	8,284,058		1,838,085		(8,680,204)		1,441,939
Material contracts	Indefinite	62,550		—		—		62,550
Customer relationships	9 years	12,397,954		15,847,527		(2,530,535)		25,714,946
Trademark	8 years	326,646		2,735		(34,311)		295,070
Non-compete agreements	5 years	—		100,000		(10,000)		90,000
Trade credits	5 years	—		1,500,000		—		1,500,000
		$	30,180,863	$	19,908,808	$	(11,503,173)	$	38,586,498


	December 31, 2022
	Estimated Useful Life (Years)	Gross Carrying Amount		Additions		Accumulated Amortization		Net Carrying Amount
Patents	15 years	$	48,668	$	14,155	$	(10,116)	$	52,707
Computer software	5 years	294,147		(46,319)		(224,886)		22,942
Operating licenses	Indefinite	8,375,514		423,490		—		8,799,004
Internally developed software	4-5 years	6,013,513		2,270,545		(6,378,911)		1,905,147
Material contracts	Indefinite	—		62,550		—		62,550
Customer relationships	8-9 years	—		12,397,954		(594,301)		11,803,653
Trademark	8 years	—		326,646		(3,403)		323,243
		$	14,731,842	$	15,449,021	$	(7,211,617)	$	22,969,246

The intangible assets include an immaterial foreign currency translation adjustment in the amount of $4,402. Intangible asset balances are translated into U.S. dollars using exchange rates in effect at period end, and adjustments related to foreign currency translation are included in other comprehensive income.

The Company recorded amortization expense of $1,515,378 and $990,345 for the three months ended September 30, 2023 and 2022, respectively.

The Company recorded amortization expense of $4,295,958 and $2,269,423 for the nine months ended September 30, 2023 and 2022, respectively.

Future amortization expense at September 30, 2023 for the next five years and in the aggregate are as follows:


	Amortization Expense
2023, remaining	$	986,093
2024	3,896,784
2025	3,846,769
2026	3,236,605
2027	3,235,890
Thereafter	12,422,803
Total	$	27,624,944

Trade Credit Agreement

During 2022, the Company provided mobile health services to one of its customers for an aggregate of $5,000,000. In June 2023, the Company entered into a Trade Credit Agreement with this customer whereby the customer was expected to provide the Company with $5,000,000 in trade credit on future vendor advertising expenditures. In July 2023, the customer paid $3,500,000 in cash to partially settle the outstanding amount owed to the Company.

The fair value of the trade credits amounted to $1,500,000, which was the remaining amount owed to the Company. As of September 30, 2023, the trade credits have been reclassified from accounts receivable to intangible assets, net on the Condensed Consolidated Balance Sheets. These trade credits are amortized to amortization expense under a usage-model as the credits are used to purchase advertising services. The Company had a remaining balance of $1,500,000 in trade credits as of September 30, 2023.