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GOODWILL AND INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2023

7.	GOODWILL AND INTANGIBLE ASSETS

Changes in the carrying amount of goodwill were:


	December 31, 2023	December 31, 2022
Goodwill	$ 27,212	$ 12,945
Acquisitions	-	14,156
Impairments	(8,248)	-
Disposition	(2,310)	-
Currency translation impact	328	111
Total goodwill	$ 16,982	$ 27,212

During the fourth quarter of 2023, as part of the Company’s annual goodwill impairment assessment, the Company determined that the goodwill associated with Virbela, the Company’s technology segment was impaired. During the impairment evaluation, the Company determined that the projection for future cash flows associated with Virbela had declined significantly resulting from the post-COVID 19 work environment of return to the office and hybrid work initiatives globally, as well as the increase in the demand for artificial intelligence solutions. The Company determined the estimated fair value of Virbela using the market approach, which measures value based on what other purchasers in the market have paid for assets or business interests that can be considered reasonably similar to Virbela. Based on that approach, the estimated fair value was significantly lower than the book value of Virbela and the goodwill associated with Virbela was impaired. The Company recognized an impairment charge of $8,248 for the year ended December 31, 2023.

During 2023, the Company disposed of its Showcase Web Sites LLC business, which resulted in a reduction of goodwill of $2,310, this business was included in the North American Realty segment.

Goodwill was recorded in connection with the acquisition of Zoocasa in July 2022 and represents fair value as of the acquisition date. The acquisition was accounted for using the acquisition method of accounting. Under the acquisition method of accounting, the Company allocated the total purchase price to the tangible and identifiable intangible assets acquired and assumed liabilities based on their estimated fair values as of the acquisition date, as determined by management. The excess of the purchase price over the aggregate fair values of the identifiable assets was recorded as goodwill.

The Company has a risk of future impairment to the extent that individual reporting unit performance does not meet projections. Additionally, if current assumptions and estimates, including projected revenues and income growth rates, terminal growth rates, competitive and consumer trends, market-based discount rates and other market factors, are not met, or if valuation factors outside of the Company’s control change unfavorably, the estimated fair value of goodwill could be adversely affected, leading to a potential impairment in the future.

Definite-lived intangible assets were as follows:


	December 31, 2023				December 31, 2022
	Gross	Accumulated		Net Carrying	Gross	Accumulated	Net Carrying
	Amount	Amortization	Impairment	Amount	Amount	Amortization	Amount
Trade name	$ 3,257	($ 1,030)	$ (585)	$ 1,642	$ 3,459	($ 841)	$ 2,618
Existing technology	9,410	(3,800)	-	5,610	3,995	(2,458)	1,537
Non-competition agreements	468	(125)	-	343	461	(125)	336
Customer relationships	1,655	(652)	(370)	633	1,895	(551)	1,344
Licensing agreement	210	(210)	-	0	210	(181)	29
Intellectual property	2,836	(583)	-	2,253	2,836	-	2,836
Total intangible assets	$ 17,836	($ 6,400)	($ 955)	$ 10,481	$ 12,856	($ 4,156)	$ 8,700

For the years ended December 31, 2023, 2022 and 2021, amortization expense for definite-lived intangible assets was $2,540, $1,904 and $1,274, respectively.

As part of the Company’s annual assessment, the Company also reviews the useful lives of its amortizable intangible assets and determines if there should be any change to the amortization period. For the amortizable assets related to the Virbela segment, the Company determined that the trade name and the customer relationships that were recognized as part of the acquisition, should be fully amortized as of December 31, 2023. This assessment was made based on the future negative operating cash flows and the decline in the estimated fair value of Virbela. As a result, the Company recognized an impairment loss related the net book value of the trade name of $585 and customer relationships $370.

As of December 31, 2023, expected amortization related to definite-lived intangible assets will be:


Expected amortization
2024		$ 2,702
2025		2,299
2026		1,275
2027		608
2028 and thereafter		3,597
Total		$ 10,481