Capitalized Software, net

3 Months Ended

Mar. 31, 2023

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Capitalized Software, net

Capitalized Software, net

For the three months ended March 31, 2023 and 2022, the Company capitalized $7.2 million and $11.1 million, respectively, of internal-use software and recognized amortization expense of $0.2 million and $3.3 million, respectively.

In addition, on January 31, 2023, the Company purchased scheduling software at a cost of $0.8 million. The acquired software will be integrated into the Company’s unified technology platform over a six to nine month period. This purchase and integration will enable increased scheduling efficiencies and related cost savings and demonstrates the Company’s continuous improvement and cost reduction commitments.

The net book value of the Company’s internal use software totaling $7.8 million and $42.1 million as of March 31, 2023 and December 31, 2022, respectively, was impaired due to the carrying value of the asset group being greater than the fair value. The Company considered the market capitalization valuation as of March 31, 2023 and December 31, 2022 which was adversely impacted by sustained declines in the Company’s stock price during the fourth quarter of 2022 through March 31, 2023, in determining the fair value of the asset group. The market capitalization was trading below cash and cash equivalents and stockholders' equity at March 31, 2023 and December 31, 2022, respectively, which required the Company to recognize the long-lived asset impairment. The Company remains confident in the utility of the long-lived assets and there has been no change as to their intended use.

No long-lived asset impairment expense was recognized for the three months ended March 31, 2022.