Goodwill and Intangibles, net

12 Months Ended

Dec. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

The following table presents the goodwill activities for the periods presented:


Balance as of December 31, 2021	$	121,851

Goodwill Impairment	(64,289)
Balance as of December 31, 2022	$	57,562


Balance as of December 31, 2023	$	57,562

The goodwill attributable to Complex Networks as of December 31, 2023 and 2022 was excluded from the table above and is reported within noncurrent assets of discontinued operations within the consolidated balance sheets. Additionally, impairment expense attributable to Complex Networks for the year ended December 31, 2022 was excluded from the table above and is reported within net (loss) income from discontinued operations, net of tax, in the consolidated statement of operations.

The following table presents the detail of intangible assets for the periods presented and the weighted average remaining useful lives:


	December 31, 2023							December 31, 2022
	Weighted- Average Remaining Useful Lives (in years)	Gross Carrying Value		Accumulated Amortization		Net Carrying Value		Gross Carrying Value		Accumulated Amortization		Net Carrying Value
Acquired Technology	0 years	$	5,500	$	5,271	$	229	$	5,500	$	3,438	$	2,062
Trademarks and Trade Names	13 years	28,550		4,704		23,846		28,550		2,801		25,749
Trademarks and Trade Names	Indefinite	1,368		—		1,368		1,368		—		1,368
Customer Relationships	2 years	2,550		1,328		1,222		2,550		691		1,859
Total		$	37,968	$	11,303	$	26,665	$	37,968	$	6,930	$	31,038

Amortization expense associated with intangible assets for the year ended December 31, 2023 and 2022 was $4.4 million and $4.4 million, respectively, included in depreciation and amortization expense.

Estimated future amortization expense as of December 31, 2023 is as follows (in thousands):


2024	$	2,770
2025	2,488
2026	1,903
2027	1,903
2028	1,903
Thereafter	14,330
	$	25,297

The intangible assets attributable to Complex Networks as of December 31, 2023 and 2022 were excluded from the table above and are reported within noncurrent assets of discontinued operations within the consolidated balance sheets. Additionally, amortization expense attributable to Complex Networks for the years ended December 31, 2023 and 2022 was excluded from the figures and table above and is reported within net (loss) income from discontinued operations, net of tax, in the consolidated statement of operations for all periods presented.

Goodwill Impairment

During the year ended December 31, 2022, the Company recorded a $64.3 million non-cash goodwill impairment charge driven by a sustained decline in share price that pushed its market capitalization below the carrying value of its stockholders’ equity.

During the fourth quarter of 2023, the Company experienced a further sustained decline in share price whereby its market capitalization was below its carrying value of its stockholders’ equity and a there was a more-likely-than-not expectation of selling a portion of its single reporting unit (i.e., the Disposition, as discussed in Notes 22 and 23 herein). As such, the Company performed a quantitative impairment assessment as of December 31, 2023.

The quantitative impairment assessment was performed as of December 31, 2023, utilizing an equal weighting of the income and market approaches. The analysis required the comparison of the Company’s carrying value with its fair value, with an impairment recorded for any excess of carrying value over the fair value. The discounted cash flow method was used to determine the fair value of the Company’s single reporting unit under the income approach. The adjusted market capitalization method was used to determine the fair value of the reporting unit under the market approach. The adjusted market capitalization method was calculated by multiplying the average share price of the Company’s Class A common stock for the average between (i) the singular day of December 29, (ii) seven days prior to the measurement date, and (iii) 30 days prior to the measurement date, by the number of outstanding shares of common stock and adding a control premium that reflects the premium a hypothetical buyer might pay. The control premium was estimated using historical transactions over three years. The results of the quantitative analysis performed indicated the fair value of the reporting unit exceeded the carrying value by more than 10%. As a result, the Company concluded there was no goodwill impairment as of December 31, 2023. The Company believes our procedures for determining fair value are reasonable and consistent with current market conditions as of December 31, 2023.