Note 9 - Intangible Assets

12 Months Ended

Dec. 31, 2023

Notes to Financial Statements

Intangible Assets Disclosure [Text Block]

NOTE 9 INTANGIBLE ASSETS

Intangible assets at December 31, 2023 and December 31, 2022 are comprised as follows:

(in thousands)			December 31, 2023
	Gross Carrying		Accumulated		Net Carrying
	Value		Amortization		Value
Intangible assets subject to amortization
Database	$	4,918	$	4,918	$	—
Vehicle service agreements in-force		3,680		3,680		—
Customer relationships		39,942		19,521		20,421
Developed technology		600		18		582
Intangible assets not subject to amortization
Trade names		14,667		—		14,667
Total	$	63,807	$	28,137	$	35,670

(in thousands)			December 31, 2022
	Gross Carrying		Accumulated		Net Carrying
	Value		Amortization		Value
Intangible assets subject to amortization
Database	$	4,918	$	4,918	$	—
Vehicle service agreements in-force		3,680		3,680		—
Customer relationships		32,442		13,630		18,812
Intangible assets not subject to amortization						—
Trade names		14,287		—		14,287
Total	$	55,327	$	22,228	$	33,099

As further discussed in Note 4, "Acquisitions," during  2023 and 2022, the Company recorded:

(in thousands)	SPI		DDI		CSuite		SNS
Acquisition Date	September 7, 2023		October 26, 2023		November 1, 2022		November 18, 2022
Customer Relationships	$	1,000	$	6,500	$	2,500	$	3,600
Amortization Period		13 years		11 years		7 years		9 years
Developed Technology	$	600		n/a		n/a		n/a
Amortization Period		10 years		-		-		-
Trade Name	$	120	$	260	$	1,500	$	3,100
Amortization Period		Indefinite		Indefinite		Indefinite		Indefinite
Total Intangibles	$	1,720	$	6,760	$	4,000	$	6,700

The intangible assets related to the SPI and DDI acquisitions are provisional and subject to adjustment during the measurement period. The Company expects to complete its purchase price during the first quarter of 2024. The estimates, allocations and calculations recorded at December 31, 2023 are subject to change as we obtain further information; therefore, the final fair values of the assets acquired and liabilities assumed may not agree with the estimates included in these consolidated financial statements.

The Company's other intangible assets with definite useful lives are amortized either based on the patterns in which the economic benefits of the intangible assets are expected to be consumed or using the straight-line method over their estimated useful lives, which range from 7 to 15 years. Amortization of intangible assets was $5.9 million and $6.1 million for the years ended December 31, 2023 and December 31, 2022, respectively. The estimated aggregate future amortization expense of all intangible assets is $5.7 million for 2024, $4.5 million for 2025, $3.4 million for 2026, $2.5 million for 2027, $1.8 million for 2028 and $3.1 million thereafter.

The trade names intangible assets have indefinite useful lives and are not amortized. As of November 30, 2023 and 2022, the Company conducted its annual qualitative assessment.  As a result, the Company determined that certain trade names should be further examined under a quantitative approach.  Based on the results of the quantitative approach, the Company did not record any impairment.  However, the Company notes that certain of its indefinite-lived intangible assets are sensitive to changes in interest rates, as well as the performance of the underlying business.  Changes in interest rates and/or if the business underlying the intangible asset performs below the assumptions used in the original purchase accounting could cause certain intangible assets to become impaired.