v3.24.3
Intangible Assets and Goodwill
 9 Months Ended
Sep. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets and Goodwill Intangible Assets and Goodwill
Intangible assets consisted of the following as of September 30, 2024 and December 31, 2023:
September 30,
2024		December 31,
2023
Customer relationships
4.5– 15 years
$11,613,000 $11,961,000 
Tradename4.5 years783,000 783,000 
Trademark
10-15 years
533,863 533,864 
Backlog
2-5 years
3,210,000 3,210,000 
Non-compete agreement
3-5 years
680,000 684,000 
16,819,863 17,171,864 
Accumulated amortization(9,566,915)(8,201,000)
Intangible assets, net$7,252,948 $8,970,864 
The intangible assets with the exception of the trademarks were recorded as part of the acquisitions of Corvus, MFSI, Merrison, SSI, LSG, and GTMR. Amortization expense for the three and nine months ended September 30, 2024 was $517,669 and $1,603,611, respectively, and amortization expense for the three and nine months ended September 30, 2023 was $634,043 and $1,758,718, respectively. Upon the MFSI Divestiture as disclosed in Note 3, “Acquisition and Disposition” the intangible assets of MFSI were removed. The intangible assets are being amortized based on the estimated future lives as noted above.
Future amortization of the intangible assets for the next five years as of September 30 are as follows:
Remainder of the year ending December 31, 2024$221,501 
Year ending 20251,422,149 
Year ending 20261,218,182 
Year ending 20271,014,558 
Year ending 2028528,784 
Year ending 2029 and thereafter2,847,774 
Total$7,252,948 
The activity of goodwill for the nine months ended September 30, 2024, is as follows:
CorvusSSIMFSITotal
December 31, 2023$1,958,741 $8,718,093 $40,073 $10,716,907 
Goodwill removed through dispositions— — (40,073)(40,073)
September 30, 2024$1,958,741 $8,718,093 $— $10,676,834 
When the Company acquires a controlling financial interest through a business combination, the Company uses the acquisition method of accounting to allocate the purchase consideration to the assets acquired and liabilities assumed, which are recorded at fair value. Any excess of purchase consideration over the net fair value of the net assets acquired is recognized as goodwill. There were no additions of goodwill for the nine months ended September 30, 2024. Upon the MFSI Divestiture as disclosed in Note 3, “Acquisition and Disposition”, goodwill associated with MFSI was removed.