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GOODWILL AND OTHER INTANGIBLE ASSETS
 9 Months Ended
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 TypeFair ValueUseful LifeValuation Methodology
Customer Relationships - Agents$12,600,000 5 yearsMulti-period excess-earnings method
Customer Relationships - Financial Relationships11,000,000 8 yearsMulti-period excess-earnings method
Internally Developed and Used Technology—APA1,600,000 2 yearsRelief from Royalty Method
Internally Developed and Used Technology—Market Place100,000 3 yearsReplacement Cost Method
Trade Name900,000 IndefiniteRelief from Royalty Method
Non-Compete Agreements4,000,000 2 yearsWith or Without Method
State Insurance Licenses2,700,000 IndefiniteReplacement 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 AmortizationNet Book Value
Customer Relationships - Agents$12,600,000 $630,000 $11,970,000 
Customer Relationships - Financial Relationships11,000,000 343,750 10,656,250 
Internally Developed and Used Technology—APA1,600,000 200,000 1,400,000 
Internally Developed and Used Technology—Market Place100,000 8,333 91,667 
Non-Compete Agreements4,000,000 500,000 3,500,000 
Balance at September 30, 2023
$29,300,000 $1,682,083 $27,617,917 
Indefinite Lived Intangible Assets:
Trade Name900,000 — 900,000 
State Insurance Licenses2,700,000 — 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 
20246,728,333 
20255,328,333 
20263,911,667 
20273,895,000 
Thereafter
6,072,501 
Total
$27,617,917