Annual report pursuant to Section 13 and 15(d)

Goodwill

v3.22.1
Goodwill
12 Months Ended
Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill

Note 10 — Goodwill

 

The changes in the carrying amount of goodwill for the year ended December 31, 2021 consisted of the following:

 

    Total  
Balance, January 1, 2020   $ 5,392,123  
Acquisition of TBD Safety, LLC     591,729  
Impairment     -  
Balance, December 31, 2020     5,983,852  
Acquisition of Lomotif Private Limited     116,188,021  
Impairment     (591,729 )
Balance, December 31, 2021   $ 121,580,144  

 

The Company recorded an impairment charge of $591,729 and $0 for the years ended December 31, 2021 and 2020, respectively, related to our annual goodwill impairment assessment. The impairment was a result of limited expected future cash flows related to our TBD Safety, LLC businesses acquired in 2020 resulting from the Company no longer allocating resources to the business. The Company utilized the simplified test for goodwill impairment. The amount recognized for impairment is equal to the difference between the carrying value and the asset’s fair value. The valuation methods used in the quantitative fair value assessment was a discounted cash flow method and required management to make certain assumptions and estimates regarding certain industry trends and future profitability of our reporting units.