Intangible Assets

6 Months Ended

Jun. 30, 2021

Goodwill And Intangible Assets Disclosure [Abstract]

8. Intangible Assets

The Company holds definite and indefinite-lived intangible assets. As of June 30, 2021, the indefinite-lived intangible assets consist of trade names of $30.1 million, and this balance consists of seven trade names, arising from the acquisitions of Hawk Parent, TriSource, APS Payments (“APS”), Ventanex, cPayPlus, CPS, BillingTree and Kontrol. As of December 31, 2020, the indefinite-lived intangible assets consist of trade names of $22.2 million, and this balance consists of six trade names, arising from the acquisitions of Hawk Parent, TriSource, APS, Ventanex, cPayPlus, and CPS.

Definite-lived intangible assets consisted of the following:

	Gross Carrying Value		Accumulated Amortization		Net Carrying Value		Weighted Average Useful Life (Years)
Customer relationships	$	513,350,000	$	54,803,810	$	458,546,190		4.89
Channel relationships		12,550,000		1,069,435		11,480,565		9.15
Software costs		139,015,287		58,763,069		80,252,218		1.01
Non-compete agreements		4,590,000		3,633,750		956,250		0.95
Balance as of June 30, 2021	$	669,505,287	$	118,270,064	$	551,235,223		4.14

Customer relationships	$	308,450,000	$	39,920,578	$	268,529,422	8.64
Channel relationships		12,550,000		191,936		12,358,064	9.65
Software costs		104,715,101		40,280,116		64,434,985	1.85
Non-compete agreements		4,270,000		2,595,333		1,674,667	1.52
Balance as of December 31, 2020	$	429,985,101	$	82,987,963	$	346,997,138	6.95

The Company’s amortization expense for intangible assets was $19.1 million and $36.6 million for the three and six months ended June 30, 2021, respectively. The Company’s amortization expense for intangible assets was $14.4 million and $28.1 million for the three and six months ended June 30, 2020, respectively.

The estimated amortization expense for the next five years and thereafter in the aggregate is as follows:

Year Ending December 31,	Estimated Future Amortization Expense
2021	$	30,143,812
2022		52,062,854
2023		37,121,611
2024		32,147,468
2025		32,245,856
2026		32,242,778
Thereafter		335,270,843

The Company has only one operating segment and, based on the criteria outlined in ASC 350, Intangibles – Goodwill and Other (“ASC 350”), only one reporting unit that needs to be tested for intangible assets impairment. Accordingly, intangible assets were reviewed for impairment at the consolidated entity level. Based on the qualitative factors described in ASC 350, the Company concluded that intangible assets were not impaired as of June 30, 2021.