GOODWILL AND OTHER INTANGIBLE ASSETS, NET

12 Months Ended

Dec. 31, 2023

GOODWILL AND OTHER INTANGIBLE ASSETS, NET

GOODWILL AND OTHER INTANGIBLE ASSETS, NET

6. GOODWILL AND OTHER INTANGIBLE ASSETS, NET

The following table sets forth the changes in the carrying amount of goodwill for the year ended December 31, 2023 and 2022:

	Total
Balance at December 31, 2021	$	1,484,966
2022 activity		-
Balance at December 31, 2022		1,484,966
2023 activity		-
Balance at December 31, 2023	$	1,484,966

The following table sets forth the gross carrying amounts and accumulated amortization of the Company’s intangible assets as of December 31, 2023 and 2022:

	Gross Carrying Amount		Impairment			Accumulated Amortization			Net Carrying Amount
Definite-lived intangible assets at January 1, 2021
Capitalized software	$	3,014,490		-		$	(2,483,429	)	$	531,061
Customer relationships		3,713,434		-			(1,363,054	)		2,350,380
Acquired technology		1,527,186		-			(1,447,758	)		79,428
Total definite-lived intangible assets at December 31, 2022	$	8,255,110	$	-		$	(5,294,241	)	$	2,960,869
Capitalized software		3,741,511		-			(2,838,099	)		903,412
Customer relationships		5,272,578		(105,676	)		(2,186,490	)		2,980,412
Acquired technology		1,527,186		-			(1,527,186	)		-
Total definite-lived intangible assets at December 31, 2023	$	10,541,275	$	(105,676	)	$	(6,551,775	)	$	3,883,824

Amortization expense of intangible assets was $1,257,534 and $1,269,564, respectively, for the years ended December 31, 2023 and 2022. The Company’s amortization is based on no residual value using the straight-line amortization method as it best represents the benefit of the intangible assets.

The following table sets forth the weighted-average amortization period, in total and by major intangible asset class:

Asset Class	Weighted-Average Amortization period
Capitalized software		3.2 years
Customer relationships		4.7 years

As of December 31, 2023, assuming no additional amortizable intangible assets, the expected amortization expense for the unamortized acquired intangible assets for the next five years and thereafter was as follows:

	Estimated
2024	$	1,357,783
2025	$	1,357,783
2026	$	1,087,976
2027	$	80,282