| Goodwill and Intangible Assets |
NOTE 8 – GOODWILL AND INTANGIBLE ASSETS
The changes in the carrying amount of goodwill for the nine months ended September 30, 2023 and 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 |
|
|
9,829,212 |
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— |
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|
9,829,212 |
September 30, 2022 |
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|
9,829,212 |
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— |
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|
9,829,212 |
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January 1, 2023 |
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$ |
9,829,212 |
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$ |
10,716,638 |
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$ |
20,545,850 |
Acquisition |
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— |
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— |
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|
— |
September 30, 2023 |
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$ |
9,829,212 |
|
$ |
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 September 30, 2023 |
|
$ |
9,829,212 |
|
$ |
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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September 30, 2023 |
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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 |
|
$ |
22,187,882 |
|
$ |
(6,891,168) |
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$ |
15,296,714 |
Developed technology |
4 years |
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|
2,400,000 |
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(900,000) |
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|
1,500,000 |
Backlog |
1 year |
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|
600,000 |
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(550,000) |
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50,000 |
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|
|
$ |
25,187,882 |
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$ |
(8,341,168) |
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$ |
16,846,714 |
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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 |
|
$ |
22,187,882 |
|
$ |
(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 |
Amortization expense on these identifiable intangible assets was $1,216,698 and $863,574 during the three months ended September 30, 2023 and 2022, respectively, and $3,700,095 and $2,084,470 during the nine months ended September 30, 2023 and 2022, respectively. The estimated future amortization expense for identifiable intangible assets during the next fiscal years is as follows:
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Year Ending December 31: |
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Q4 2023 |
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$ |
1,038,381 |
2024 |
|
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2,837,500 |
2025 |
|
|
2,837,500 |
2026 |
|
|
2,387,500 |
2027 |
|
|
2,237,500 |
Thereafter |
|
|
5,508,333 |
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