Intangible Assets, Net

3 Months Ended

Mar. 31, 2024

6. Intangible Assets, Net

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

	March 31, 2024							December 31, 2023
	Gross Amount		Accumulated Amortization			Net Carrying Amount		Gross Amount		Accumulated Amortization			Net Carrying Amount
	(In thousands)
Customer and referral relationships	$	100,914	$	(32,231	)	$	68,683	$	93,658	$	(30,414	)	$	63,244
Tradenames		46,145		-			46,145		44,573		-			44,573
Non-compete agreements		9,818		(7,758	)		2,060		9,459		(7,594	)		1,865
	$	156,877	$	(39,989	)	$	116,888	$	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 three months ended March 31, 2024, the weighted average amortization period for customer and referral relationships was 12.7 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:

	Three Months Ended
	March 31, 2024		March 31, 2023
	(In thousands)
Customer and referral relationships	$	1,818	$	1,664
Non-compete agreements		163		153
	$	1,981	$	1,817

Based on the balance of referral relationships and non-compete agreements as of March 31, 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 three months ended March 31, 2024)	$	5,645	$	497
2025		7,428		605
2026		6,960		465
2027		6,797		303
2028		6,528		169
Thereafter	$	35,325	$	21