10-Q 1 qrhc-20230930.htm 10-Q 10-Q
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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2023

Commission file number: 001-36451

Quest Resource Holding Corporation

(Exact Name of Registrant as Specified in its Charter)

 

 

Nevada

51-0665952

(State or other Jurisdiction of

Incorporation or Organization)

(I.R.S. Employer

Identification No.)

3481 Plano Parkway, Suite 100

The Colony, Texas 75056

(Address of Principal Executive Offices and Zip Code)

(972) 464-0004

(Registrant’s Telephone Number, Including Area Code)

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading

Symbol

 

Name of each exchange on which registered

Common stock

 

QRHC

 

NASDAQ

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company

 

 

 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No ☒

As of November 1, 2023, there were 20,059,947 shares of the registrant’s common stock, $0.001 par value, outstanding.

 


 

TABLE OF CONTENTS

Page

PART I. FINANCIAL INFORMATION

 

 

 

 

Item 1. Financial Statements (Unaudited)

2

 

 

 

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

14

 

 

 

Item 3. Quantitative and Qualitative Disclosures About Market Risk

19

 

 

 

Item 4. Controls and Procedures

19

 

 

 

PART II. OTHER INFORMATION

 

 

 

 

Item 1. Legal Proceedings

21

 

 

 

Item 1A. Risk Factors

21

 

 

 

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

21

 

 

 

Item 3. Defaults Upon Senior Securities

21

 

 

 

Item 4. Mine Safety Disclosures

21

 

 

 

Item 5. Other Information

21

 

 

 

Item 6. Exhibits

22

 

 

 

Signatures

23

 

 

 

1

 


 

PART I. FINANCIAL INFORMATION

 

 

Item 1. Financial Statements (Unaudited)

QUEST RESOURCE HOLDING CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

 

 

September 30,

 

 

December 31,

 

 

 

2023

 

 

2022

 

 

 

(Unaudited)

 

 

 

 

ASSETS

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

870,233

 

 

$

9,563,709

 

Accounts receivable, less allowance for doubtful accounts of $2,357,345
   and $
2,176,010 as of September 30, 2023 and December 31, 2022, respectively

 

 

49,932,053

 

 

 

45,891,144

 

Prepaid expenses and other current assets

 

 

2,745,946

 

 

 

2,310,423

 

Total current assets

 

 

53,548,232

 

 

 

57,765,276

 

 

 

 

 

 

 

 

Goodwill

 

 

84,258,206

 

 

 

84,258,206

 

Intangible assets, net

 

 

27,767,759

 

 

 

33,556,340

 

Property and equipment, net, and other assets

 

 

4,865,721

 

 

 

5,911,227

 

Total assets

 

$

170,439,918

 

 

$

181,491,049

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

Current liabilities:

 

 

 

 

 

 

Accounts payable and accrued liabilities

 

$

40,916,726

 

 

$

32,207,461

 

Other current liabilities

 

 

2,497,832

 

 

 

4,688,605

 

Current portion of notes payable

 

 

1,158,800

 

 

 

1,158,800

 

Total current liabilities

 

 

44,573,358

 

 

 

38,054,866

 

 

 

 

 

 

 

 

Notes payable, net

 

 

56,786,013

 

 

 

70,572,891

 

Other long-term liabilities

 

 

1,395,607

 

 

 

1,724,244

 

Total liabilities

 

 

102,754,978

 

 

 

110,352,001

 

 

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity:

 

 

 

 

 

 

Preferred stock, $0.001 par value, 10,000,000 shares authorized, no shares
   issued or outstanding as of September 30, 2023 and December 31, 2022

 

 

 

 

 

 

Common stock, $0.001 par value, 200,000,000 shares authorized,
    
19,959,677 and 19,696,006 shares issued and outstanding
    as of September 30, 2023 and December 31, 2022, respectively

 

 

19,960

 

 

 

19,696

 

Additional paid-in capital

 

 

175,383,223

 

 

 

173,876,319

 

Accumulated deficit

 

 

(107,718,243

)

 

 

(102,756,967

)

Total stockholders’ equity

 

 

67,684,940

 

 

 

71,139,048

 

Total liabilities and stockholders’ equity

 

$

170,439,918

 

 

$

181,491,049

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

2

 


 

QUEST RESOURCE HOLDING CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

Revenue

 

$

70,425,425

 

 

$

73,358,293

 

 

$

219,036,423

 

 

$

221,785,249

 

Cost of revenue

 

 

57,995,192

 

 

 

61,174,960

 

 

 

180,471,602

 

 

 

183,685,111

 

Gross profit

 

 

12,430,233

 

 

 

12,183,333

 

 

 

38,564,821

 

 

 

38,100,138

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general, and administrative

 

 

9,620,114

 

 

 

9,332,721

 

 

 

28,249,820

 

 

 

27,975,550

 

Depreciation and amortization

 

 

2,341,581

 

 

 

2,473,339

 

 

 

7,218,683

 

 

 

7,308,591

 

Total operating expenses

 

 

11,961,695

 

 

 

11,806,060

 

 

 

35,468,503

 

 

 

35,284,141

 

Operating income

 

 

468,538

 

 

 

377,273

 

 

 

3,096,318

 

 

 

2,815,997

 

Interest expense

 

 

(2,408,076

)

 

 

(1,911,989

)

 

 

(7,407,207

)

 

 

(5,057,400

)

Loss before taxes

 

 

(1,939,538

)

 

 

(1,534,716

)

 

 

(4,310,889

)

 

 

(2,241,403

)

Income tax expense

 

 

111,104

 

 

 

151,619

 

 

 

650,387

 

 

 

479,011

 

Net loss

 

$

(2,050,642

)

 

$

(1,686,335

)

 

$

(4,961,276

)

 

$

(2,720,414

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss applicable to common stockholders

 

$

(2,050,642

)

 

$

(1,686,335

)

 

$

(4,961,276

)

 

$

(2,720,414

)

Net loss per share applicable to common shareholders

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.10

)

 

$

(0.09

)

 

$

(0.25

)

 

$

(0.14

)

Diluted

 

$

(0.10

)

 

$

(0.09

)

 

$

(0.25

)

 

$

(0.14

)

Weighted average number of common shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

20,059,528

 

 

 

19,368,192

 

 

 

19,984,890

 

 

 

19,297,636

 

Diluted

 

 

20,059,528

 

 

 

19,368,192

 

 

 

19,984,890

 

 

 

19,297,636

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

 

3

 


 

QUEST RESOURCE HOLDING CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

(UNAUDITED)

 

 

 

 

 

 

 

 

Additional

 

 

 

 

 

Total

 

 

 

Common Stock

 

 

Paid-in

 

 

Accumulated

 

 

Stockholders’

 

 

 

Shares

 

 

Par Value

 

 

Capital

 

 

Deficit

 

 

Equity

 

Balance, December 31 2022

 

 

19,696,006

 

 

$

19,696

 

 

$

173,876,319

 

 

$

(102,756,967

)

 

$

71,139,048

 

Stock-based compensation

 

 

 

 

 

 

 

 

298,431

 

 

 

 

 

 

298,431

 

Stock option exercises

 

 

28,166

 

 

 

28

 

 

 

62,520

 

 

 

 

 

 

62,548

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

(2,024,053

)

 

 

(2,024,053

)

Balance, March 31, 2023

 

 

19,724,172

 

 

 

19,724

 

 

 

174,237,270

 

 

 

(104,781,020

)

 

 

69,475,974

 

Stock-based compensation

 

 

 

 

 

 

 

 

362,319

 

 

 

 

 

 

362,319

 

Stock option exercises

 

 

35,000

 

 

 

35

 

 

 

52,815

 

 

 

 

 

 

52,850

 

Shares issued for Employee Stock Purchase Plan options

 

 

22,888

 

 

 

23

 

 

 

106,979

 

 

 

 

 

 

107,002

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

(886,581

)

 

 

(886,581

)

Balance, June 30, 2023

 

 

19,782,060

 

 

 

19,782

 

 

 

174,759,383

 

 

 

(105,667,601

)

 

 

69,111,564

 

Stock-based compensation

 

 

 

 

 

 

 

 

288,563

 

 

 

 

 

 

288,563

 

Stock option exercises

 

 

177,617

 

 

 

178

 

 

 

335,277

 

 

 

 

 

 

335,455

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

(2,050,642

)

 

 

(2,050,642

)

Balance, September 30, 2023

 

 

19,959,677

 

 

$

19,960

 

 

$

175,383,223

 

 

$

(107,718,243

)

 

$

67,684,940

 

 

 

 

 

 

 

 

 

 

 

Additional

 

 

 

 

 

Total

 

 

 

Common Stock

 

 

Paid-in

 

 

Accumulated

 

 

Stockholders’

 

 

 

Shares

 

 

Par Value

 

 

Capital

 

 

Deficit

 

 

Equity

 

Balance, December 31, 2021

 

 

19,045,988

 

 

$

19,046

 

 

$

170,318,199

 

 

$

(96,708,981

)

 

$

73,628,264

 

Stock-based compensation

 

 

 

 

 

 

 

 

258,638

 

 

 

 

 

 

258,638

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

(2,184,309

)

 

 

(2,184,309

)

Balance, March 31, 2022

 

 

19,045,988

 

 

 

19,046

 

 

 

170,576,837

 

 

 

(98,893,290

)

 

 

71,702,593

 

Stock-based compensation

 

 

 

 

 

 

 

 

326,894

 

 

 

 

 

 

326,894

 

Stock option exercises

 

 

53,465

 

 

 

53

 

 

 

92,375

 

 

 

 

 

 

92,428

 

Shares issued for Employee Stock Purchase Plan options

 

 

17,720

 

 

 

18

 

 

 

76,648

 

 

 

 

 

 

76,666

 

Net income

 

 

 

 

 

 

 

 

 

 

 

1,150,231

 

 

 

1,150,231

 

Balance, June 30, 2022

 

 

19,117,173

 

 

 

19,117

 

 

 

171,072,754

 

 

 

(97,743,059

)

 

 

73,348,812

 

Stock-based compensation

 

 

 

 

 

 

 

 

412,715

 

 

 

 

 

 

412,715

 

Release of deferred stock units

 

 

28,650

 

 

 

29

 

 

 

(29

)

 

 

 

 

 

 

Stock option exercises

 

 

145,102

 

 

 

145

 

 

 

307,274

 

 

 

 

 

 

307,419

 

Net loss

 

 

 

 

 

 

 

 

 

 

 

(1,686,335

)

 

 

(1,686,335

)

Balance, September 30, 2022

 

 

19,290,925

 

 

$

19,291

 

 

$

171,792,714

 

 

$

(99,429,394

)

 

$

72,382,611

 

 

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

4

 


 

QUEST RESOURCE HOLDING CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

 

 

For the Nine Months Ended September 30,

 

 

 

2023

 

 

2022

 

Cash flows from operating activities:

 

 

 

 

 

 

Net loss

 

$

(4,961,276

)

 

$

(2,720,414

)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

 

 

 

 

 

 

Depreciation

 

 

645,047

 

 

 

571,738

 

Amortization of intangibles

 

 

6,840,559

 

 

 

6,969,692

 

Amortization of debt issuance costs and discounts

 

 

875,385

 

 

 

978,386

 

Provision for doubtful accounts

 

 

1,210,179

 

 

 

1,143,757

 

Stock-based compensation

 

 

949,313

 

 

 

998,247

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

Accounts receivable

 

 

(5,251,088

)

 

 

(13,079,923

)

Prepaid expenses and other current assets

 

 

(435,523

)

 

 

(1,110,912

)

Security deposits and other assets

 

 

195,634

 

 

 

(850,290

)

Accounts payable and accrued liabilities

 

 

8,747,102

 

 

 

3,076,785

 

Other liabilities

 

 

(2,147,507

)

 

 

(295,959

)

Net cash provided by (used in) operating activities

 

 

6,667,825

 

 

 

(4,318,893

)

Cash flows from investing activities:

 

 

 

 

 

 

Purchase of property and equipment

 

 

(204,915

)

 

 

(627,216

)

Purchase of intangible assets

 

 

(1,051,978

)

 

 

(631,615

)

Acquisition, net of cash acquired

 

 

 

 

 

(3,137,758

)

Net cash used in investing activities

 

 

(1,256,893

)

 

 

(4,396,589

)

Cash flows from financing activities:

 

 

 

 

 

 

Proceeds from credit facilities

 

 

63,672,337

 

 

 

59,023,146

 

Repayments of credit facilities

 

 

(70,514,967

)

 

 

(54,353,819

)

Proceeds from long-term debt

 

 

 

 

 

3,500,000

 

Repayments of long-term debt

 

 

(7,819,633

)

 

 

(1,124,774

)

Proceeds from shares issued for Employee Stock Purchase Plan

 

 

107,002

 

 

 

76,666

 

Proceeds from stock option exercises

 

 

450,853

 

 

 

399,847

 

Debt issuance costs

 

 

 

 

 

(139,550

)

Net cash provided by (used in) financing activities

 

 

(14,104,408

)

 

 

7,381,516

 

Net decrease in cash and cash equivalents

 

 

(8,693,476

)

 

 

(1,333,966

)

Cash and cash equivalents at beginning of period

 

 

9,563,709

 

 

 

8,427,858

 

Cash and cash equivalents at end of period

 

$

870,233

 

 

$

7,093,892

 

 

 

 

 

 

 

 

Supplemental cash flow information:

 

 

 

 

 

 

Cash paid for interest

 

$

6,575,490

 

 

$

3,918,191

 

Cash paid for income taxes, net

 

$

328,098

 

 

$

359,327

 

The accompanying notes are an integral part of these condensed consolidated financial statements.

5

 


 

QUEST RESOURCE HOLDING CORPORATION AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

 

1. The Company and Description of Business

The accompanying condensed consolidated financial statements include the accounts of Quest Resource Holding Corporation (“QRHC”) and its subsidiaries, Quest Resource Management Group, LLC (“Quest”), Landfill Diversion Innovations, LLC (“LDI”), Youchange, Inc. (“Youchange”), Quest Vertigent Corporation (“QVC”), Quest Vertigent One, LLC (“QV One”), Quest Sustainability Services, Inc. (“QSS”), and Sequoia Waste Management Solutions, LLC (“Sequoia”) (collectively, “we,” “us,” or “our company”). The subsidiaries RWS Facility Services, LLC (“RWS”) and Sustainable Solutions Group (“SSG”) were merged into Quest in 2023 and were subsequently dissolved as separate legal entities.

Operations – We are a national provider of waste and recycling services to customers from across multiple industry sectors that are typically larger, multi-location businesses. We create customer-specific programs and perform the related services for the collection, processing, recycling, disposal, and tracking of waste streams and recyclables. In addition, we offer products such as antifreeze and windshield washer fluid and other minor ancillary services. We also provide information and data that tracks and reports the detailed transactional and environmental results of our services and provides actionable data to improve business operations. The data we generate also enables our customers to address their environmental and sustainability goals and responsibilities.

On February 10, 2022, we acquired an independent environmental services company that primarily services customers in the northeast region of the United States. See Note 3 for more information regarding the acquisition.

2. Summary of Significant Accounting Policies

Principles of Presentation and Consolidation

The condensed consolidated financial statements included herein have been prepared by us without audit pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and should be read in conjunction with our audited financial statements for the year ended December 31, 2022. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted as permitted by the SEC, although we believe the disclosures that are made are adequate to make the information presented herein not misleading.

The accompanying condensed consolidated financial statements reflect, in our opinion, all normal recurring adjustments necessary to present fairly our financial position at September 30, 2023 and the results of our operations and cash flows for the periods presented. We derived the December 31, 2022 condensed consolidated balance sheet data from audited financial statements; however, we did not include all disclosures required by GAAP. As QRHC, Quest, LDI, Youchange, QVC, QV One, QSS, and Sequoia each operate as environmental-based service companies, we did not deem segment reporting necessary.

All intercompany accounts and transactions have been eliminated in consolidation. Interim results are subject to seasonal variations, and the results of operations for the nine months ended September 30, 2023 are not necessarily indicative of the results to be expected for the full year.

Recent Accounting Pronouncements

In June 2016, the Financial Accounting Standards Board, (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments – Credit Losses (Topic 326), which provides guidance on measuring credit losses on financial instruments, including trade receivables. The amended guidance replaces current incurred loss impairment methodology of recognizing credit losses when a loss is probable with a new forward-looking approach to estimate expected credit losses. We adopted the new standard on January 1, 2023. The adoption of the new standard did not have a material impact on our condensed consolidated financial statements as pre-existing processes for estimating expected credit losses for trade receivables generally aligned with the expected credit loss model.

There have been no other recent accounting pronouncements or changes in accounting pronouncements that have been issued but not yet adopted that are of significance, or potential significance, to us.

3. Acquisition

On February 10, 2022, we acquired an independent environmental services company that primarily services customers in the northeast region of the United States for approximately $3.35 million. This acquisition was paid in cash and was financed with a draw down on the term loan pursuant to the Credit Agreement (as defined in Note 8). The purchase price was allocated to the acquired assets, primarily customer relationship intangibles and goodwill.

6

 


 

4. Accounts Receivable, Net of Allowance for Doubtful Accounts

Our receivables, which are recorded when billed or when services are performed, are claims against third parties that will generally be settled in cash. The carrying value of our receivables, net of the allowance for doubtful accounts, represents the estimated net realizable value. We estimate our allowance for doubtful accounts based on consideration of a number of factors, including the length of time trade accounts are past due, our previous loss history, the creditworthiness of individual customers, economic conditions affecting specific customer industries, and economic conditions in general. We write off past-due receivable balances after all reasonable collection efforts have been exhausted. We credit payments subsequently received on such receivables to bad debt expense in the period we receive the payment.

The following table reflects the activity in our allowance for doubtful accounts of trade receivables for the three and nine months ended September 30, 2023 and 2022:

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2023

 

 

2022

 

 

2023

 

 

2022

 

 

 

(Unaudited)

 

 

(Unaudited)

 

Beginning balance

 

$

2,095,947

 

 

$

1,728,974

 

 

$

2,176,010

 

 

$

840,522

 

Bad debt expense

 

 

639,820

 

 

 

411,802

 

 

 

1,210,179

 

 

 

1,143,757

 

Uncollectible accounts written off, net of recoveries

 

 

(378,422

)

 

 

(63,129

)

 

 

(1,028,844

)

 

 

93,368

 

Ending balance

 

$

2,357,345

 

 

$

2,077,647

 

 

$

2,357,345

 

 

$

2,077,647

 

5. Property and Equipment, Net, and Other Assets

At September 30, 2023 and December 31, 2022, property and equipment, net, and other assets consisted of the following:

 

 

 

September 30,

 

 

December 31,

 

 

 

2023

 

 

2022

 

 

 

(Unaudited)

 

 

 

 

Property and equipment, net of accumulated depreciation of $3,085,471
   and $
2,499,797 as of September 30, 2023 and December 31, 2022, respectively

 

$

2,237,547

 

 

$

2,623,704

 

Right-of-use operating lease assets

 

 

1,998,975

 

 

 

2,385,870

 

Security deposits and other assets

 

 

629,199

 

 

 

901,653

 

    Property and equipment, net, and other assets

 

$

4,865,721

 

 

$

5,911,227

 

We compute depreciation using the straight-line method over the estimated useful lives of the property and equipment. Depreciation expense for the three months ended September 30, 2023 was $150,594, including $96,086 of depreciation expense reflected within “Cost of revenue” in our condensed consolidated statements of operations as it related to assets used in directly servicing customer contracts and was $645,047 for the nine months ended September 30, 2023, including $266,923 of depreciation expense reflected within “Cost of revenue.” Depreciation expense for the three months ended September 30, 2022 was $201,345, including $80,903 of depreciation expense reflected within “Cost of revenue,” and was $571,738 for the nine months ended September 30, 2022, including $232,839 reflected in “Cost of revenue.”

We recorded right-of-use operating lease assets related to our office leases in accordance with ASC 842. Refer to Note 9, Leases for additional information.

6. Goodwill and Other Intangible Assets

The components of goodwill and other intangible assets were as follows:

 

September 30, 2023 (Unaudited)

 

Estimated
Useful Life

 

Gross Carrying
Amount

 

 

Accumulated
Amortization

 

 

Net

 

Finite lived intangible assets:

 

 

 

 

 

 

 

 

 

 

 

Customer relationships

 

5 years

 

$

39,250,000

 

 

$

15,696,355

 

 

$

23,553,645

 

Software

 

7 years

 

 

3,651,144

 

 

 

1,716,339

 

 

 

1,934,805

 

Trademarks

 

7 years

 

 

2,019,612

 

 

 

585,858

 

 

 

1,433,754

 

Non-compete agreements

 

3 years

 

 

2,250,000

 

 

 

1,404,445

 

 

 

845,555

 

Total finite lived intangible assets

 

 

 

$

47,170,756

 

 

$

19,402,997

 

 

$

27,767,759

 

 

7

 


 

December 31, 2022

 

Estimated
Useful Life

 

Gross Carrying
Amount

 

 

Accumulated
Amortization

 

 

Net

 

Finite lived intangible assets:

 

 

 

 

 

 

 

 

 

 

 

Customer relationships

 

5 years

 

$

39,250,000

 

 

$

9,808,855

 

 

$

29,441,145

 

Software

 

7 years

 

 

2,609,374

 

 

 

1,541,500

 

 

 

1,067,874

 

Trademarks

 

7 years

 

 

2,009,403

 

 

 

370,137