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INTANGIBLE ASSETS AND GOODWILL

9 Months Ended

Sep. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

NOTE 10 - INTANGIBLE ASSETS AND GOODWILL

Costs incurred internally in researching and developing software products are charged to expense until technological feasibility has been established for the product. Once technological feasibility is established, software costs are capitalized until the product is available for general release to customers. Judgment is required in determining when technological feasibility of a product is established. The amortization of these costs will be included in cost of revenue over the estimated life of the products.

The following table summarizes identifiable intangible assets of the Company as of December 31, 2022 and September 30, 2023:

SCHEDULE OF INTANGIBLE ASSETS

September 30, 2023	Useful Lives (In Years)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Amortized:
Customer relationships	9-12	$	19,264	$	(7,200	)	$	12,064
Trademark and tradename	3-15		7,553		(3,486	)		4,067
Patents	7-11		628		(418	)		210
Technology	7		10,911		(10,149	)		762
Favorable contract interest	4		388		(388	)		-
Covenant not to compete	5		208		(208	)		-
Software to be sold or leased	3-6		4,086		(197	)		3,889
			43,038		(22,046	)		20,992

Unamortized
Customer list			104		-			104
Trademark and tradename			61		-			61

			165		-			165

Total		$	43,203	$	(22,046	)	$	21,157

December 31, 2022	Useful Lives (In Years)	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Amortized:
Customer relationships	9-12	$	20,031	$	(6,830	)	$	13,201
Trademark and tradename	3-15		7,589		(2,990	)		4,599
Patents	7-11		628		(351	)		277
Technology	7		10,667		(7,866	)		2,801
Favorable contract interest	4		388		(388	)		-
Covenant not to compete	5		208		(208	)		-
Software to be sold or leased	3-6		1,865		-			1,865
			41,376		(18,633	)		22,743

Unamortized
Customer list			104		-			104
Trademark and tradename			61		-			61

			165		-			165

Total		$	41,541	$	(18,633	)	$	22,908

Global uncertainties continue to adversely impact the broader global economy and have caused significant volatility in financial markets. If there is a lack of recovery or further global softening in certain markets, or a sustained decline in the value of the Company’s common stock, the Company may conclude that indicators of impairment exist and would then be required to calculate whether or not an impairment exists for its goodwill, other intangibles, and long-lived assets, the results of which could result in material impairment charges. The Company tests goodwill and other indefinite lives intangible assets on an annual basis in the fourth quarter and more frequently if the Company believes indicators of impairment exists. As of December 31, 2022 and September 30, 2023, the Company determined that no impairment existed to the goodwill, customer list and trademark and trade name of its acquired intangibles.

At September 30, 2023, the weighted-average amortization period for the intangible assets was 8.5 years. At September 30, 2023, the weighted-average amortization periods for customer relationships, trademarks and trade names, patents, technology, and capitalized software to be sold or leased were 11.9, 9.6, 7.0, 4.3, and 3.0 years, respectively.

Amortization expense for the three- and nine-month periods ended September 30, 2022 was $1,267 and $3,816, respectively, and for the three- and nine-month periods ended September 30, 2023 was $1,766 and $4,285, respectively. Estimated future amortization expense for each of the five succeeding fiscal years for these intangible assets is as follows:


2023 (remaining)	$	1,673
2024		3,984
2025		3,857
2026		2,754
2027		2,233
Thereafter		6,491
Finite-Lived intangible assets	$	20,992

There have been no changes in the carrying amount of goodwill from January 1, 2023 to September 30, 2023.

For the nine-month period ended September 30, 2023, the Company did not identify any indicators of impairment.