Quarterly report pursuant to Section 13 or 15(d)

GOODWILL & INTANGIBLE ASSETS

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GOODWILL & INTANGIBLE ASSETS
 3 Months Ended
Mar. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL & INTANGIBLE ASSETS

NOTE 6 – GOODWILL & INTANGIBLE ASSETS

 

Goodwill

 

The Company recorded goodwill in conjunction with the initial acquisition of Impact Engineering, Inc. (“Impact”) on March 7, 2019 and the 2WR Entities on July 30, 2021. The goodwill balance as of March 31, 2022 and December 31, 2021 is $7,992,121. Goodwill is not amortized. There is no goodwill for income tax purposes. The Company did not record any impairment charges related to goodwill for the periods ended March 31, 2022 and 2021.

 

Intangible Assets Other Than Goodwill

 

Intangible assets as of March 31, 2022 and December 31, 2021 consisted of the following:

SCHEDULE OF FINITE-LIVED INTANGIBLE ASSETS 

    March 31, 2022  
    Cost     Accumulated Amortization     Net Book Value  
Finite-lived intangible assets:                        
Customer relationships     834,100       79,438       754,662  
Trademarks and trade names     499,000       66,533       432,467  
Backlog and Other     445,837       292,568       153,269  
Total finite-lived intangible assets:     1,778,937       438,539       1,340,398  
                         
Indefinite-lived intangible assets:                        
Patents    

44,276

       -      

44,276

  
Trade name     28,291       -       28,291  
Total Intangible assets, net     1,851,504       438,539       1,412,965  

 

    December 31, 2021  
    Cost     Accumulated Amortization     Net Book Value  
Customer relationships     834,100       49,649       784,451  
Trademarks and trade names     499,000       41,583       457,417  
Backlog and Other     518,404       184,806       333,598  
      1,851,504       276,039       1,575,466  

 

The estimated future amortization expense for intangible assets subject to amortization as of March 31, 2022, is summarized below:

 

    Estimated Future  
  Amortization Expense  
Remainder of 2022     308,584  
2023     220,601  
2024     220,601  
2025     220,464  
Thereafter     370,148  
Total     1,340,398  

 

Amortization expense for intangible assets for the three months ended March 31, 2022 and 2021 was $162,500 and $168, respectively.