Intangible Assets

9 Months Ended

Sep. 30, 2019

Goodwill And Intangible Assets Disclosure [Abstract]

6. Intangible assets

The Company holds definite and indefinite-lived intangible assets. The indefinite-lived intangible assets consist of trade names, of $20,800,000, as of September 30, 2019. This balance consists of two trade names, arising from the acquisitions of Hawk Parent and TriSource in the Successor period from July 11, 2019 to September 30, 2019.

Definite-lived intangible assets consisted of the following:

	Gross Carrying Value		Accumulated Amortization		Net Carrying Value		Weighted Average Useful Life (Years)
Customer relationships	$	79,187,788	$	16,658,908	$	62,528,880		7.92
Software costs		7,949,839		2,779,091		5,170,748		2.10
Reseller buyouts		581,000		57,867		523,133		9.00
Balance as of December 31, 2018 (Predecessor)	$	87,718,627	$	19,495,866	$	68,222,761		7.49

Customer relationships	$	236,500,000	$	5,038,817	$	231,461,183	9.79
Channel relationships		3,000,000		66,935		2,933,065	9.78
Software costs		70,632,965		5,109,846		65,523,119	2.78
Non-competition agreements		3,250,000		323,118		2,926,882	1.80
Balance as of September 30, 2019 (Successor)	$	313,382,965	$	10,538,717	$	302,844,248	8.13

The Successor’s amortization expense for intangible assets was $10,538,717 for the period from July 11, 2019 through September 30, 2019. The Predecessor’s amortization expense for intangible assets was $318,070 and $5,940,613 for the periods from July 1, 2019 to July 10, 2019 and January 1, 2019 to July 10, 2019, respectively. The Predecessor’s amortization expense for intangible assets was $2,557,338 and $7,309,512 for the three and nine months ended September 30, 2018, respectively.

The estimated amortization expense for the next five years and thereafter in the aggregate is as follows:

Year Ending December 31,	Estimated Future Amortization Expense
2019	$	12,279,830
2020		49,119,322
2021		48,389,953
2022		36,500,761
2023		23,950,000
2024		23,950,000
Thereafter	$	108,654,382