INTANGIBLE ASSETS, NET

9 Months Ended

Sep. 30, 2022

7. INTANGIBLE ASSETS, NET

Intangible assets, net as of September 30, 2022, and December 31, 2021 consisted of the following (in thousands):

	September 30, 2022		December 31, 2021
Tradenames	$	40,188	$	38,790
Customer and referral relationships, net of accumulated amortization of $22,176 and $17,762, respectively		51,806		45,643
Non-compete agreements, net of accumulated amortization of $6,846 and $6,450, respectively		1,703		1,949
	$	93,697	$	86,382

Tradenames, 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 referral relationships is being amortized over their respective estimated useful lives which range from six to fourteen years. Non-compete agreements are amortized over the respective term of the agreements which range from five to six years.

The following table details the amount of amortization expense recorded for intangible assets for the three and nine months ended September 30, 2022, and 2021 (in thousands):

	Three Months Ended				Nine Months Ended
	September 30, 2022		September 30, 2021		September 30, 2022		September 30, 2021
Customer and referral relationships	$	1,404	$	852	$	4,415	$	2,412
Non-compete agreements		129		143		396		320
	$	1,533	$	995	$	4,811	$	2,732

Based on the balance of referral relationships and non-compete agreements as of September 30, 2022, the expected amount to be amortized in 2022 and thereafter by year is as follows (in thousands):

Customer and Referral Relationships			Non-Compete Agreements
Years	Annual Amount		Years	Annual Amount
Ending December 31,			Ending December 31,
2022 (excluding the nine months ended September 30, 2022)	$	1,421	2022 (excluding the nine months ended September 30, 2022)	$	137
2023	$	5,586	2023	$	492
2024	$	5,421	2024	$	436
2025	$	5,276	2025	$	369
2026	$	4,809	2026	$	229
Thereafter	$	29,293	Thereafter	$	40