Quarterly report pursuant to Section 13 or 15(d)

Intangible Assets

v3.23.1
Intangible Assets
3 Months Ended
Mar. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
INTANGIBLE ASSETS . INTANGIBLE ASSETS

 

Changes in goodwill were as follows:

 

 

Goodwill Before Impairment

 

 

Cumulative Goodwill Impairments

 

 

Goodwill

 

Balance at December 31, 2022

$

163,360

 

 

$

(136,760

)

 

$

26,600

 

Other

 

121

 

 

 

-

 

 

 

121

 

Balance at March 31, 2023

$

163,481

 

 

$

(136,760

)

 

$

26,721

 

 

Intangible assets consisted of the following:

 

 

 

 

March 31,

 

 

December 31,

 

 

 

Useful Life

 

2023

 

 

2022

 

Proprietary technology and capitalized internal-use software

 

3 - 7 years

 

$

38,449

 

 

$

41,495

 

Work in process

 

 

 

 

1,551

 

 

 

1,812

 

Customer relationships

 

10 - 15 years

 

 

160,500

 

 

 

160,500

 

Trade names

 

9 - 15 years

 

 

15,960

 

 

 

16,620

 

Less: accumulated amortization

 

 

 

 

(27,066

)

 

 

(26,180

)

Intangible assets, net

 

 

 

$

189,394

 

 

$

194,247

 

 

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 $1,162 for the three months ended March 31, 2023 and were $758 for the three months ended March 31, 2022.

 

For the three months ended March 31, 2023 and 2022, total amortization expense was $5,880 and $3,191, respectively.

The following table summarizes estimated future amortization expense of intangible assets placed in service at March 31, 2023 for the years ending:

Remainder of 2023

 

 

 

 

 

$

17,259

 

2024

 

 

 

 

 

 

22,925

 

2025

 

 

 

 

 

 

22,925

 

2026

 

 

 

 

 

 

22,925

 

2027

 

 

 

 

 

 

22,353

 

Thereafter

 

 

 

 

 

 

79,456

 

 

 

 

 

 

$

187,843