Annual report pursuant to Section 13 and 15(d)

Intangible Assets and Goodwill

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Intangible Assets and Goodwill
 12 Months Ended
Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets and Goodwill Intangible Assets and Goodwill
On January 1, 2021, the Company entered into an agreement under which the Company repurchased the right to develop franchises in various counties in Georgia. The total consideration for the transaction was $1,388,700. The Company carried a deferred revenue balance associated with this transaction of $35,679, representing the unrecognized fee collected upon the execution of the regional developer agreement. The Company accounted for the termination of development rights associated with unsold or undeveloped franchises as a cancellation, and the associated deferred revenue was netted against the aggregate purchase price. The Company recognized the net amount of $1,353,021 as reacquired development rights in January 2021, which is amortized over the remaining original contract period of approximately 13 months.

During 2021, the Company recognized $3,548,971, $1,251,031, and $59,311 of reacquired franchise rights, customer relationships, and assembled workforce, respectively, from the acquisitions (reference Note 3).
Intangible assets consisted of the following:
December 31, 2021
Gross Carrying
Amount		 Accumulated
Amortization		 Net Carrying
Value
Intangible assets subject to amortization:
Reacquired franchise rights $ 6,795,865  $ 3,153,037  $ 3,642,828 
Customer relationships 2,603,006  1,587,443  1,015,563 
Reacquired development rights 4,406,221  3,715,594  690,627 
Assembled workforce 59,311  4,939  54,372 
$ 13,864,403  $ 8,461,013  $ 5,403,390 

December 31, 2020
Gross Carrying
Amount		 Accumulated
Amortization		 Net Carrying
Value
Intangible assets subject to amortization:
Reacquired franchise rights $ 3,246,894  $ 2,107,730  $ 1,139,164 
Customer relationships 1,351,975  1,130,800  221,175 
Reacquired development rights 3,053,201  1,548,534  1,504,667 
$ 7,652,070  $ 4,787,064  $ 2,865,006 

The following is the weighted average amortization period for the Company's intangible assets:
Amortization (Years)
Reacquired franchise rights 5.8
Customer relationships 2.5
Reacquired development rights 3.3
Assembled workforce 2.0
     All intangible assets 4.4
Amortization expense related to the Company’s intangible assets was $3,673,950 and $1,453,905 for the years ended December 31, 2021 and 2020, respectively.
Estimated amortization expense for 2022 and subsequent years is as follows:
2022 $ 2,269,517 
2023 1,205,732 
2024 637,945 
2025 357,842 
2026 258,438 
Thereafter 673,916 
Total $ 5,403,390 

The changes in the carrying amount of goodwill were as follows:

Corporate Clinic Segment
Balance as of December 31, 2020
Goodwill, gross $ 4,680,598 
Accumulated impairment losses (54,994)
Goodwill, net 4,625,604 
2021 acquisition 459,599 
Balance as of December 31, 2021
Goodwill, gross 5,140,197
Accumulated impairment losses (54,994)
Goodwill, net $ 5,085,203