iCoreConnect Inc. (ticker ICCT) recently released their SEC report for the fiscal year ended December 31, 2022, which details a decrease in the value of the company’s intangible assets but a growth in long-term debt. This article will analyze the key figures presented in the report, such as the carrying amounts of intangible assets and the level of long-term debt, to provide a fuller understanding of the company’s financial health.
The gross carrying amount of iCoreConnect’s definite-lived intangible assets at the end of 2022 was $8,255,110.
This figure includes capitalized software ($3,014,490), customer relationships ($3,713,443), and acquired technology ($1,527,186). In comparison, at the end of 2021, the gross carrying amount of these assets was $7,965,297. Despite the increase in gross carrying amount, the net carrying amount of total definite-lived intangible assets decreased from $3,940,621 in 2021 to $2,960,869 in 2022.
A significant factor contributing to this decrease is the accumulated amortization of definite-lived intangible assets. As of December 31, 2022, the accumulated amortization increased to $5,294,241, from $4,024,677 in 2021. This results in a reduced net carrying amount for capitalized software (from $592,781 in 2021 to $531,061 in 2022), customer relationships (from $3,069,874 in 2021 to $2,350,380 in 2022), and acquired technology (from $277,966 in 2021 to $79,428 in 2022).
Amortization expense of intangible assets was $1,269,564 for 2022 and $1,287,853 for 2021. The weighted-average amortization period for all intangible assets is 5.9 years, with capitalized software having a 3.2-year period, customer relationships a 4-year period, and acquired technology a 5-year period.
On the other hand, the company’s long-term debt has seen growth during the same time.
As of December 31, 2022, iCoreConnect’s total long-term debt amounted to $1,449,261, up from $1,538,488 the previous year. The long-term debt comprises various convertible notes, promissory notes, and warrant agreements with different maturity dates and interest rates.
One of the most notable additions to iCoreConnect’s long-term debt is a secured promissory note signed in February 2022, worth $1,960,965 with a 17.5% interest rate and a maturity date of February 28, 2026. Other long-term debt transactions include reissuance of unsecured promissory notes, renegotiations of convertible notes, and signing new notes with related parties.
As a result, iCoreConnect’s total future minimum payments due on long-term debt amounts to $1,449,261 as of December 31, 2022, compared to $1,538,488 at the end of 2021. This includes payments due in the years 2023 ($573,401), 2024 ($679,438), and 2025 ($196,422).
In conclusion, the SEC report of iCoreConnect Inc. for 2022 indicates a decrease in the net carrying amount of the company’s intangible assets, primarily due to the accumulated amortization. Meanwhile, the company experienced an increase in long-term debt, with various debt agreements in place, reflecting the need for additional financing in the business. As iCoreConnect continues to grow, it is essential to closely monitor the progress of their intangible assets, as well as their ability to manage and repay long-term debt.
Note that we may hold securities mentioned in this article. All data is based on recent SEC filings. Even though we have implemented various manual and automatic fact-checking and data acquisition processes, some incorrect information may have slipped through (false positive). Let us know if you find any inconsistencies!