| Goodwill and Intangible Assets |
NOTE 10 – GOODWILL AND INTANGIBLE ASSETS
The changes in the carrying amount of goodwill for the years ended December 31, 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 |
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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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December 31, 2023 |
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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 |
Balance at December 31, 2023 |
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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, 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 |
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$ |
22,187,882 |
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$ |
(7,729,549) |
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$ |
14,458,333 |
Developed technology |
4 years |
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2,400,000 |
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(1,050,000) |
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1,350,000 |
Backlog |
1 year |
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600,000 |
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(600,000) |
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— |
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$ |
25,187,882 |
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$ |
(9,379,549) |
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$ |
15,808,333 |
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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 |
Amortization expense on these identifiable intangible assets was $4,738,477 and $3,133,460 for the years ended December 31, 2023 and 2022, respectively. The weighted average remaining useful life at December 31, 2023 was 6.1 years. The estimated future amortization expense for identifiable intangible assets during the next five fiscal years is as follows:
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Year Ending December 31: |
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2024 |
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$ |
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 |
2028 |
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2,237,500 |
Thereafter |
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3,270,833 |
Total |
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$ |
15,808,333 |
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