| Intangible Assets and Goodwill |
Intangible Assets and Goodwill During 2022, the Company recognized $6.1 million, $1.7 million, and $0.9 million of reacquired franchise rights, customer relationships, and assembled workforce, respectively, from the acquisitions (reference Note 4). Intangible assets consisted of the following:
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December 31, 2022 |
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(As Restated) |
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Gross Carrying
Amount |
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Accumulated
Amortization |
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Net Carrying
Value |
| Intangible assets subject to amortization: |
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| Reacquired franchise rights |
$ |
12,881,894 |
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$ |
4,755,286 |
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$ |
8,126,608 |
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| Customer relationships |
4,330,365 |
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2,352,500 |
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1,977,865 |
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| Assembled workforce |
959,837 |
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136,015 |
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823,822 |
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$ |
18,172,096 |
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$ |
7,243,801 |
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$ |
10,928,295 |
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December 31, 2021 |
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(As Restated) |
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Gross Carrying
Amount |
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Accumulated
Amortization |
|
Net Carrying
Value |
| Intangible assets subject to amortization: |
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| Reacquired franchise rights |
$ |
6,795,865 |
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$ |
3,153,037 |
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$ |
3,642,828 |
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| Customer relationships |
2,603,006 |
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1,587,443 |
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1,015,563 |
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| Assembled workforce |
59,311 |
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4,939 |
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54,372 |
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$ |
9,458,182 |
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$ |
4,745,419 |
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$ |
4,712,763 |
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The following is the weighted average amortization period for the Company's intangible assets (as restated):
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Amortization (Years) |
| Reacquired franchise rights |
5.8 |
| Customer relationships |
2.6 |
| Assembled workforce |
2.0 |
| All intangible assets |
4.8 |
Restated amortization expense related to the Company’s intangible assets was $2,498,390 and $1,506,881 for the years ended December 31, 2022 and 2021, respectively.
Estimated amortization expense for 2023 and subsequent years is as follows (as restated):
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| 2023 |
$ |
3,643,736 |
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| 2024 |
2,578,510 |
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| 2025 |
1,542,251 |
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| 2026 |
1,225,152 |
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| 2027 |
670,120 |
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| Thereafter |
1,268,526 |
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| Total |
$ |
10,928,295 |
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The changes in the carrying amount of goodwill were as follows:
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Corporate Clinic Segment |
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Balance as of December 31, 2021 |
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| Goodwill, gross |
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$ |
5,140,197 |
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| Accumulated impairment losses |
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(54,994) |
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| Goodwill, net |
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5,085,203 |
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| 2022 acquisition |
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3,408,204 |
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Balance as of December 31, 2022 |
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| Goodwill, gross |
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8,548,401 |
| Accumulated impairment losses |
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(54,994) |
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| Goodwill, net |
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$ |
8,493,407 |
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