| INTANGIBLE ASSETS |
NOTE
9. INTANGIBLE ASSETS
Intangible
assets, net consist of the following as of June 30, 2026 and December 31, 2025:
SCHEDULE OF INTANGIBLE ASSETS, NET
| June 30, 2026 | |
Useful Lives (Years) | |
Gross Carrying
Amount | | |
Accumulated Amortization | | |
Net Carrying
Amount | |
| Trade names | |
8-13 years | |
$ | 4,444,000 | | |
$ | (2,069,567 | ) | |
$ | 2,374,433 | |
| Customer relationships | |
4-6 years | |
| 2,669,000 | | |
| (2,075,139 | ) | |
| 593,861 | |
| Non-compete | |
4-5 years | |
| 2,322,000 | | |
| (1,581,485 | ) | |
| 740,515 | |
| Intangible assets, net | |
| |
$ | 9,435,000 | | |
$ | (5,726,191 | ) | |
$ | 3,708,809 | |
| December 31, 2025 | |
Useful Lives (Years) | |
Gross Carrying
Amount | | |
Accumulated Amortization | | |
Net Carrying
Amount | |
| Trade names | |
8-13 years | |
$ | 4,489,000 | | |
$ | (1,889,394 | ) | |
$ | 2,599,606 | |
| Customer relationships | |
4-6 years | |
| 2,669,000 | | |
| (1,926,306 | ) | |
| 742,694 | |
| Non-compete | |
4-5 years | |
| 2,322,000 | | |
| (1,366,685 | ) | |
| 955,315 | |
| Intangible assets, net | |
| |
$ | 9,480,000 | | |
$ | (5,182,385 | ) | |
$ | 4,297,615 | |
Intangible
assets are amortized on a straight-line basis over their estimated useful lives. Amortization expense was approximately $277,000 and
$297,000 for the three months ended June 30, 2026 and 2025, and approximately $554,000 and $593,000 for the six months ended June 30,
2026 and 2025, respectively. Future annual estimated amortization expense is as follows:
SCHEDULE OF FUTURE ANNUAL ESTIMATED AMORTIZATION EXPENSE
| Years ending December 31, | |
| |
| 2026 (remaining six months) | |
$ | 551,520 | |
| 2027 | |
| 964,771 | |
| 2028 | |
| 655,332 | |
| 2029 | |
| 447,896 | |
| 2030 | |
| 264,440 | |
| Thereafter | |
| 824,850 | |
| Total | |
$ | 3,708,809 | |
|