Goodwill and Other Intangible Assets

6 Months Ended

Jun. 30, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

The Company acquired various companies which were accounted for as a business combination using the acquisition method of accounting in accordance with Accounting Standards Codification (“ASC”) Topic 805, Business Combinations (“Topic 805”). The total excess of the purchase price over the tangible and intangible assets acquired and liabilities assumed was recorded as goodwill of $101.9 million and $101.6 million as of June 30, 2024 and December 31, 2023, respectively, of which $37.4 million was deductible for tax purposes as of June 30, 2024.

On June 26, 2024, the Company acquired BRM Services, Inc. (“Jorgenson’s Lounge”), a hospitality location in Helena, Montana, for a total purchase price of $1.1 million. The purchase price primarily included a Montana All-Alcoholic Beverage License.

The following is a roll forward of the Company's goodwill (in thousands):

Goodwill balance as of January 1, 2024	$	101,554
Addition to goodwill for acquisition of Jorgenson’s Lounge	305
Goodwill balance as of June 30, 2024	$	101,859

Other intangible assets

Other intangible assets consist of definite-lived trade names, customer relationships, and software applications. The Company determines the fair value of trade name assets acquired in acquisitions using a relief from royalty valuation method which requires assumptions such as projected revenue and a royalty rate. Other intangible assets are amortized over their estimated 7 to 20-year useful lives.

Other intangible assets consist of the following as of June 30, 2024 and December 31, 2023 (in thousands):

		June 30, 2024						December 31, 2023
	Amortization Period	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Customer Relationships	7 years	$	6,800	$	(2,024)	$	4,776	$	6,800	$	(1,538)	$	5,262
Software Applications	8 years	7,800		(2,031)		5,769		7,800		(1,544)		6,256
Trade Names	20 years	9,800		(1,021)		8,779		9,800		(776)		9,024
		$	24,400	$	(5,076)	$	19,324	$	24,400	$	(3,858)	$	20,542

Amortization expense of other intangible assets was $0.6 million and $1.2 million for both the three and six months ended June 30, 2024, and June 30, 2023, respectively.

Indefinite-lived intangible assets

The Company also has indefinite-lived intangible assets related to operating licenses totaling $4.4 million and $2.8 million as of June 30, 2024 and December 31, 2023, respectively, which are recorded within other assets on the condensed consolidated balance sheets.