| Intangible Assets and Goodwill |
Intangible Assets and Goodwill During 2023, the Company recognized $0.7 million, $0.1 million, and $0.2 million of reacquired franchise rights, customer relationships, and assembled workforce, respectively, from the acquisitions as disclosed in Note 3, "Acquisitions." Intangible assets consisted of the following:
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December 31, 2023 |
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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 |
$ |
7,385,830 |
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$ |
2,926,595 |
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$ |
4,459,235 |
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| Customer relationships |
1,682,807 |
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|
1,349,938 |
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|
332,869 |
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| Assembled workforce |
440,844 |
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|
212,022 |
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228,822 |
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$ |
9,509,481 |
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$ |
4,488,555 |
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$ |
5,020,926 |
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December 31, 2022 |
|
Gross Carrying
Amount |
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Accumulated
Amortization |
|
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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The following is the weighted average amortization period for the Company's intangible assets:
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Amortization (Years) |
| Reacquired franchise rights |
5.9 |
| Customer relationships |
2.6 |
| Assembled workforce |
2.0 |
| All intangible assets |
4.9 |
Amortization expense related to the Company’s intangible assets was $3,434,201 and 2,498,390 for the years ended December 31, 2023 and 2022, respectively.
Estimated amortization expense for 2024 and subsequent years is as follows:
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| 2024 |
$ |
1,500,619 |
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| 2025 |
1,100,700 |
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| 2026 |
958,290 |
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| 2027 |
565,521 |
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| 2028 |
454,120 |
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| Thereafter |
441,676 |
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| Total |
$ |
5,020,926 |
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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, 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 |
| 2023 acquisition |
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— |
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Balance as of December 31, 2023 |
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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 reclassified to Held for sale |
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(1,140,529) |
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| Goodwill, net |
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7,352,879 |
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