| Goodwill and Intangible Assets |
NOTE 10 – GOODWILL AND INTANGIBLE ASSETS
The changes in the carrying amount of goodwill for the year ended December 31, 2022 by reporting unit are as follows.
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HEC |
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SUNation |
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Total |
January 1, 2022 |
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$ |
— |
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$ |
— |
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$ |
— |
Acquisition |
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9,829,212 |
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10,716,638 |
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20,545,850 |
December 31, 2022 |
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$ |
9,829,212 |
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$ |
10,716,638 |
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$ |
20,545,850 |
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Gross goodwill |
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9,829,212 |
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10,716,638 |
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20,545,850 |
Accumulated impairment loss |
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— |
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— |
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— |
Balance at December 31, 2022 |
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$ |
9,829,212 |
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$ |
10,716,638 |
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$ |
20,545,850 |
The Company’s identifiable intangible assets with finite lives are being amortized over their estimated useful lives and were as follows:
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December 31, 2022 |
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Estimated Useful Life |
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Gross Carrying Amount |
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Accumulated Amortization |
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Net |
Tradenames & trademarks |
3-8 years |
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$ |
22,187,882 |
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$ |
(4,141,072) |
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$ |
18,046,810 |
Developed technology |
4 years |
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2,400,000 |
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(450,000) |
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1,950,000 |
Backlog |
1 year |
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600,000 |
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(50,000) |
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550,000 |
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$ |
25,187,882 |
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$ |
(4,641,072) |
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$ |
20,546,810 |
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December 31, 2021 |
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Estimated Useful Life |
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Gross Carrying Amount |
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Accumulated Amortization |
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Net |
Tradenames & trademarks |
3 years |
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$ |
4,287,882 |
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$ |
(1,507,612) |
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$ |
2,780,270 |
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$ |
4,287,882 |
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$ |
(1,507,612) |
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$ |
2,780,270 |
Amortization expense on these identifiable intangible assets was $3,133,460 and $1,429,295 in 2022 and 2021 respectively. The weighted average remaining useful life at December 31, 2022 was 6.5 years. The estimated future amortization expense for identifiable intangible assets during the next five fiscal years is as follows:
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Year Ending December 31: |
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2023 |
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$ |
4,738,462 |
2024 |
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2,837,500 |
2025 |
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2,837,500 |
2026 |
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2,387,500 |
2027 |
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2,237,500 |
Thereafter |
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5,508,348 |
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