Intangible Assets, Net

9 Months Ended

Sep. 30, 2024

6. Intangible Assets, Net

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

	As of September 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	$	110,452	$	(36,275	)	$	74,177	$	93,658	$	(30,414	)	$	63,244
Tradenames		47,940		-			47,940		44,573		-			44,573
Non-compete agreements		10,335		(8,143	)		2,192		9,459		(7,594	)		1,865
	$	168,727	$	(44,418	)	$	124,309	$	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 15.0 years. Non-compete agreements are amortized over the respective term of the agreements which range from 5.0 to 6.0 years. For the nine months ended September 30, 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:

	For the Three Months Ended				For the Nine Months Ended
	September 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023
	(In thousands)
Customer and referral relationships	$	1,977	$	1,669	$	5,861	$	4,972
Non-compete agreements		183		148		537		450
	$	2,160	$	1,817	$	6,398	$	5,422

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

For the Year Ending December 31,	Customer and Referral Relationships		Non-Compete Agreements
	(In thousands)
2024 (excluding the nine months ended September 30, 2024)	$	2,039	$	185
2025		8,136		697
2026		7,670		557
2027		7,506		396
2028		7,237		267
Thereafter		41,589		90
Total	$	74,177	$	2,192