Goodwill and intangible assets

6 Months Ended

Jun. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

Goodwill represents the difference between the purchase price and the estimated fair value of identifiable assets acquired and liabilities assumed. Goodwill acquired in a business combination is determined to have an indefinite useful life and is not amortized, but instead is tested for impairment at least annually in accordance with ASC 350.

Intangible assets

Intangible assets, net consisted of the following as of June 30, 2023 and December 31, 2022:


(In thousands, except weighted average useful life)	June 30, 2023
Intangible assets:	Gross Carrying Value		Accumulated Amortization		Net Carrying Value		Weighted Average Useful Life (in years)
Customer relationships	$	10,496	$	(4,098)	$	6,398	8.3
Tradenames	11,328		(2,386)		8,942		11.3
Technology - acquired	23,802		(10,171)		13,631		5.3
Non-compete agreements	750		(544)		206		1.3
Total intangible assets	$	46,376	$	(17,199)	$	29,177	7.8


(In thousands, except weighted average useful life)	December 31, 2022
Intangible assets:	Gross Carrying Value(1)		Accumulated Amortization(1)		Net Carrying Value		Weighted Average Useful Life (in years)(1)
Customer relationships	$	10,496	$	(3,328)	$	7,168	8.8
Tradenames	11,328		(1,794)		9,534		11.8
Technology - acquired	23,802		(8,705)		15,097		5.3
Non-compete agreements	750		(461)		289		1.8
Total intangible assets	$	46,376	$	(14,288)	$	32,088	8.0

(1) Both the Gross Carrying Value and Accumulated Amortization balances as of December 31, 2022 contain immaterial adjustments to reflect impairments taken during the year ended December 31, 2022 on each of the intangible asset classes presented here. Each intangible asset class was adjusted as follows: Customer relationships: $0.8 million; Tradenames: $2.4 million, Technology - acquired: $4.1 million, Non-compete agreements: $0.4 million. The Weighted Average Useful Life was additionally adjusted to reflect the updated balances subsequent to the impairment charges.

Amortization expense for definite-lived intangible assets was $1.5 million and $2.9 million for the three and six months ended June 30, 2023, respectively and $2.9 million and $5.7 million for the three and six months ended June 30, 2022,

respectively. As of June 30, 2023, the Company expects to record the following amortization expense for definite-lived intangible assets:


(In thousands)	Amortization Expense
For the Years Ending December 31,
2023 (6 months remaining)	$	2,520
2024	4,607
2025	4,435
2026	4,137
2027	3,383
Thereafter	10,095
Total	$	29,177