6. INTANGIBLE ASSETS

Goodwill as of December 31, 2022 and 2021 was $26,600 and $52,541, respectively. The decrease relates to a goodwill impairment loss that was identified based on a goodwill impairment calculation effective December 31, 2022, partially offset by an increase in goodwill acquired from the ML Enterprise Acquisition. See Note 2, “Summary of Significant Accounting Policies,” for additional information regarding goodwill impairment. See Note 17, “Mergers and Acquisitions,” for more information regarding goodwill and other intangible assets acquired from the ML Enterprise Acquisition.

The Company capitalizes certain internal-use software development costs, consisting primarily of contractor costs and employee salaries and benefits allocated to the software. Capitalization of costs incurred in connection with internally developed software commences when both the preliminary project stage is completed and management has authorized further funding for the project, based on a determination that it is probable the project will be completed and used to perform the function intended. Costs incurred for enhancements that are expected to result in additional functionalities are capitalized in a similar manner. Capitalization of costs ceases no later than the point at which the project is substantially complete and ready for its intended use, at which point amortization of capitalized costs begins.

All other costs are expensed as incurred. Costs capitalized in connection with internally developed software were $6,984 for the twelve months ended December 31, 2022 and were not significant for the twelve months ended December 31, 2021.

For the twelve months ended December 31, 2022 and 2021, total amortization expense was $20,438 and $2,049, respectively.