Quarterly report pursuant to Section 13 or 15(d)

9. Goodwill

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9. Goodwill
 3 Months Ended
Mar. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
9. Goodwill

9. Goodwill

 

    March 31, 2023   December 31, 2022
Cost                
Opening balance as of January 1,   $ 28,686,661     $ 28,687,051  
Acquisition of Engage IT Services, Srl     1,754,230       —    
Foreign exchange movements     (86 )     (390 )
Closing balance as of period end     30,440,805       28,686,661  
                 
Accumulated Impairment charge                
Opening balance as of January 1,     (27,024,383 )     (12,522,714 )
Impairment charge     —         (14,501,669 )
Closing balance as of period end     (27,024,383 )     (27,024,383 )
                 
Goodwill, net of impairment charges   $ 3,416,422     $ 1,662,278  

 

 

Goodwill represents the excess purchase price paid over the fair value of assets acquired, including any other identifiable intangible assets.

 

The Company evaluates goodwill for impairment on an annual basis during the last month of each year and at an interim date if indications of impairment exist. Goodwill impairment is determined by comparing the fair value of the reporting unit to its carrying amount with an impairment being recognized only when the fair value is less than carrying value and the impairment is deemed to be permanent in nature.