INTANGIBLE ASSETS, NET

12 Months Ended

Dec. 31, 2023

Disclosure of detailed information about intangible assets [abstract]

INTANGIBLE ASSETS, NET

NOTE 7: INTANGIBLE ASSETS, NET

	Software			Trademarks			Customer relationships			Technology			Goodwill			Total
	USD thousands
Cost
Balance as of January 1, 2022		24,687			36,367			50,108			53,192			156,712			321,066
Exchange rate differences		(50	)		(1,262	)		(1,455	)		(548	)		(3,216	)		(6,531	)
Additions		8,750			-			-			-			-			8,750
Disposals		(1,199	)		(19,570	)		(2,393	)		(4,851	)		-			(28,013	)
Business combinations		-			7,654			29,169			85,684			92,244			214,751
Balance as of December 31, 2022		32,188			23,189			75,429			133,477			245,740			510,023
Exchange rate differences		25			485			455			272			874			2,111
Additions		15,187			-			-			-			-			15,187
Disposals		(12	)		(23,674	)		(1,845	)		-			(262	)		(25,793	)
Balance as of December 31, 2023		47,388			-			74,039			133,749			246,352			501,528
Amortization
Balance as of January 1, 2022		14,876			29,786			28,223			39,961			-			112,846
Exchange rate differences		2			(585	)		(914	)		(198	)		-			(1,695	)
Additions		6,189			2,514			9,289			10,257			-			28,249
Disposals		(659	)		(19,570	)		(2,393	)		(4,851	)		-			(27,473	)
Balance as of December 31, 2022		20,408			12,145			34,205			45,169			-			111,927
Exchange rate differences		15			355			353			157			-			880
Additions		7,172			11,174			12,407			21,499			-			52,252
Disposals		(12	)		(23,674	)		(1,845	)		-			-			(25,531	)
Balance as of December 31, 2023		27,583			-			45,120			66,825			-			139,528
Carrying amounts
As of December 31, 2023		19,805			-			28,919			66,924			246,352			362,000
As of December 31, 2022		11,780			11,044			41,224			88,308			245,740			398,096

Capitalized development costs
 

Development costs capitalized in the period amounted to USD 14,222 thousand (2022: USD 8,743 thousand) and were classified under software.

Acceleration of Trademarks

As detailed in Note 1, following the decision to rebrand to Nexxen, the Group accelerated the amortization of its trademark assets, whose useful life ended on December 31, 2023.

Impairment testing for intangible assets

The Company's qualitative assessment during the years ended December 31, 2023, and December 31, 2022, did not indicate that it is more likely than not that the recoverable amount of its intangible assets, and other long-lived assets is less than their aggregate carrying amount.

As of December 31, 2023, and as of December 31, 2022, the estimated recoverable amount based on Company’s market value was lower than the carrying amount, and therefore the recoverable amount was estimated based on value in use and was determined by discounting the future cash flows. The estimated value in use was higher than the carrying amount, and therefore there was no need for impairment.

Key assumptions used in the calculation of recoverable amounts are as of December 31, 2023:

Post-tax discount rate	14% (WACC)
Terminal value growth rate	3%
EBITDA growth rate	26%-42%

Key assumptions used in the calculation of recoverable amounts are as of December 31, 2022:

Post-tax discount rate	15% (WACC)
Terminal value growth rate	3%
EBITDA growth rate	21%-33%

The cash flow projections include specific estimates for four years and a terminal value growth rate thereafter. EBITDA growth rate is expressed as the annual growth rate in the initial five years of the plans used for impairment testing and has been mainly based on past experience and management expectations.