GOODWILL AND OTHER INTANGIBLE ASSETS

9 Months Ended

Sep. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure [Text Block]

NOTE 5 - GOODWILL AND OTHER INTANGIBLE ASSETS

	December 31, 2021		Acquisitions		September 30, 2022
Goodwill	$	86,011	$	—	$	86,011

We believe significant synergies are expected to arise from our strategic acquisitions and their assembled work forces. This factor contributed to a purchase price that was in excess of the fair value of the net assets acquired and, as a result, we recorded goodwill for each acquisition. A portion of acquired goodwill will be amortizable for tax purposes. As of September 30, 2022, there has been no impairment of goodwill based on the qualitative assessments performed by the Company.

Gross Intangible Assets	December 31, 2021		Acquisitions		September 30, 2022
Customer relationships	$	114,611	$	2,360	$	116,971
Developed technology	12,001		—		12,001
Reseller relationships	1,012		327		1,339
Trade names	880		—		880
Non-compete agreements	1,032		—		1,032
	$	129,536	$	2,687	$	132,223

The gross carrying amount and accumulated amortization of our intangible assets as of September 30, 2022 are as follows (in thousands, except weighted average periods):

	Weighted Average Amortization Period (in Years)	Gross		Accumulated Amortization		Net
September 30, 2022
Customer relationships	8.9	$	116,971	$	(49,427)	$	67,544
Developed technology	6.6	12,001		(9,987)		2,014
Reseller relationships	7.6	1,339		(880)		459
Trade names	3.0	880		(780)		100
Non-compete agreements	5.2	1,032		(911)		121
	8.4	$	132,223	$	(61,985)	$	70,238
December 31, 2021
Customer relationships	8.7	$	114,611	$	(39,535)	$	75,076
Developed technology	6.6	12,001		(9,098)		2,903
Reseller relationships	7.2	1,012		(864)		148
Trade names	3.0	880		(579)		301
Non-compete agreements	5.2	1,032		(887)		145
	8.4	$	129,536	$	(50,963)	$	78,573

We record amortization expenses using the straight-line method over the estimated useful lives of the intangible assets, as noted above. Amortization expenses recorded in Operating Expenses were $10,134 and $7,590 for the nine months ended September 30, 2022 and 2021, respectively. Amortization expenses recorded in Cost of Sales were $889 and $1,135 for the nine months ended September 30, 2022 and 2021, respectively. There was no impairment of intangibles during the nine months ended September 30, 2022 based on the qualitative assessment performed by the Company. However, if market, political and other conditions over which we have no control continue to affect the capital markets and our stock price declines, we may experience an impairment of our intangibles in future quarters.

The following table summarizes the future estimated amortization expense relating to our intangible assets as of September 30, 2022 (in thousands):

2022	$	3,659
2023	13,600
2024	13,339
2025	12,554
2026	9,442
2027	7,267
Thereafter	10,377
	$	70,238