Intangible Assets, Net

6 Months Ended

Jun. 30, 2024

6. Intangible Assets, Net

The Company’s intangible assets, net, consisted of the following:

	As of June 30, 2024							As of December 31, 2023
	Gross Amount		Accumulated Amortization			Net Carrying Amount		Gross Amount		Accumulated Amortization			Net Carrying Amount
	(In thousands)
Customer and referral relationships	$	108,371	$	(34,297	)	$	74,074	$	93,658	$	(30,414	)	$	63,244
Tradenames		47,631		-			47,631		44,573		-			44,573
Non-compete agreements		10,146		(7,948	)		2,198		9,459		(7,594	)		1,865
	$	166,148	$	(42,245	)	$	123,903	$	147,690	$	(38,008	)	$	109,682

Tradenames, customer and referral relationships and non-compete agreements are related to the businesses acquired. The value assigned to tradenames has an indefinite life and is tested at least annually for impairment using the relief from royalty method in conjunction with the Company’s annual goodwill impairment test. The value assigned to customer and referral relationships is being amortized over their respective estimated useful lives which range from 7.0 to 14.0 years. Non-compete agreements are amortized over the respective term of the agreements which range from 5.0 to 6.0 years. For the six months ended June 30, 2024, the weighted average amortization period for customer and referral relationships was 12.6 years and the weighted average amortization period for non-compete agreements was 5.5 years. During the year ended December 31, 2023, the Company recognized a charge of $1.7 million related to the impairment of a tradename related to an IIP acquisition.

The following table details the amount of amortization expense recorded for intangible assets for the periods presented:

	For the Three Months Ended				For the Six Months Ended
	June 30, 2024		June 30, 2023		June 30, 2024		June 30, 2023
	(In thousands)
Customer and referral relationships	$	2,066	$	1,639	$	3,884	$	3,303
Non-compete agreements		191		149		354		302
	$	2,257	$	1,788	$	4,238	$	3,605

Based on the balance of referral relationships and non-compete agreements as of June 30, 2024, the expected amount to be amortized in 2024 and thereafter by year is as follows:

For the Year Ended December 31,	Customer and Referral Relationships		Non-Compete Agreements
	(In thousands)
2024 (excluding the six months ended June 30, 2024)	$	4,037	$	360
2025		8,049		671
2026		7,582		531
2027		7,418		369
2028		7,149		228
Thereafter		39,839		39
Total	$	74,074	$	2,198