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GOODWILL AND OTHER INTANGIBLE ASSETS | 9 Months Ended
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Sep. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract] |
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill of $140,287,000 was recognized as a result of the Business Combination, which represents the excess fair value of consideration over the fair value of the underlying net assets, largely arising from the extensive industry expertise that has been established by Abacus. This was considered appropriate based on the determination that the Abacus Merger would be accounted for as a business acquisition under ASC 805. The estimates of fair value are based upon preliminary valuation assumptions believed to be reasonable, but which are inherently uncertain and unpredictable. Refer to Note 3, Business Combination, for further details. The changes in the carrying amount of goodwill by reportable segments were as follows:
|  | Portfolio Servicing |  | Active Management |  | Originations
Goodwill at January 1, 2023 |  | $ | — |  |  | $ | — |  |  | $ | — |
Additions |  | — |  |  | — |  |  | 140,287,000 |
Goodwill at September 30, 2023 |  | $ | — |  |  | $ | — |  |  | $ | 140,287,000 |
Intangible Assets Acquired comprised of the following:
Asset Type |  | Fair Value |  | Useful Life |  | Valuation Methodology
Customer Relationships - Agents |  | $ | 12,600,000 |  |  | 5 years |  | Multi-period excess-earnings method
Customer Relationships - Financial Relationships |  | 11,000,000 |  |  | 8 years |  | Multi-period excess-earnings method
Internally Developed and Used Technology—APA |  | 1,600,000 |  |  | 2 years |  | Relief from Royalty Method
Internally Developed and Used Technology—Market Place |  | 100,000 |  |  | 3 years |  | Replacement Cost Method
Trade Name |  | 900,000 |  |  | Indefinite |  | Relief from Royalty Method
Non-Compete Agreements |  | 4,000,000 |  |  | 2 years |  | With or Without Method
State Insurance Licenses |  | 2,700,000 |  |  | Indefinite |  | Replacement Cost Method
|  | $ | 32,900,000 |  |  |  |  |
Intangible assets and related accumulated amortization as of September 30, 2023 and December 31,2022 are as follows:
|  | September 30, 2023
Definite Lived Intangible Assets: |  | Gross Value |  | Accumulated Amortization |  | Net Book Value
Customer Relationships - Agents |  | $ | 12,600,000 |  |  | $ | 630,000 |  |  | $ | 11,970,000 |
Customer Relationships - Financial Relationships |  | 11,000,000 |  |  | 343,750 |  |  | 10,656,250 |
Internally Developed and Used Technology—APA |  | 1,600,000 |  |  | 200,000 |  |  | 1,400,000 |
Internally Developed and Used Technology—Market Place |  | 100,000 |  |  | 8,333 |  |  | 91,667 |
Non-Compete Agreements |  | 4,000,000 |  |  | 500,000 |  |  | 3,500,000 |
Balance at September 30, 2023 |  | $ | 29,300,000 |  |  | $ | 1,682,083 |  |  | $ | 27,617,917 |
Indefinite Lived Intangible Assets: |  |  |  |  |  |
Trade Name |  | 900,000 |  |  | — |  |  | 900,000 |
State Insurance Licenses |  | 2,700,000 |  |  | — |  |  | 2,700,000 |
Total Intangible Asset Balance at September 30, 2023 |  | $ | 32,900,000 |  |  | $ | 1,682,083 |  |  | $ | 31,217,917 |
Substantially all intangible assets with finite useful lives are subject to amortization when they are available for their intended use. Amortization expense for definite lived intangible assets was $1,682,083 and $0 for the three months ended September 30, 2023 and 2022, respectively, and $1,682,083 and $0 for the nine months ended September 30, 2023 and 2022, respectively. Estimated annual amortization of intangible assets for the next five years ending December 31 and thereafter is as follows:
Remainder of 2023 |  | $ | 1,682,083 |
2024 |  | 6,728,333 |
2025 |  | 5,328,333 |
2026 |  | 3,911,667 |
2027 |  | 3,895,000 |
Thereafter |  | 6,072,501 |
Total |  | $ | 27,617,917 |

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 350 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//350/tableOfContent + Details
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