Goodwill and Intangible Assets

9 Months Ended

Jun. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

6. GOODWILL AND INTANGIBLE ASSETS

Goodwill

The Company had a goodwill balance of $128.0 million at June 30, 2022, representing the excess of costs over fair value of assets of businesses acquired. Goodwill acquired in a business combination and determined to have an indefinite useful life is not amortized, but instead is tested for impairment at least annually in accordance with ASC 350. The following table summarizes changes in the balance of goodwill during the nine months ended June 30, 2022 (amounts shown in thousands):


Balance at September 30, 2021	$	63,096
Acquisition of HooYu	74,312
Foreign currency effect on goodwill	(9,416)
Balance at June 30, 2022	$	127,992

Intangible Assets

Intangible assets include the value assigned to purchased completed technology, customer relationships, trade names and covenants not to compete. The estimated useful lives for all of these intangible assets range from three to seven years and they are amortized on a straight-line basis. Intangible assets as of June 30, 2022 and September 30, 2021, respectively, are summarized as follows (amounts shown in thousands, except for years):


June 30, 2022:	Weighted Average Amortization Period	Cost		Accumulated Amortization		Net
Completed technologies	6.9 years	$	95,761	$	24,635	$	71,126
Customer relationships	4.7 years	25,168		16,683		8,485
Trade names	5.0 years	7,088		1,458		5,630
Covenants not to compete	3.0 years	600		98		502
Total intangible assets		$	128,617	$	42,874	$	85,743


September 30, 2021:	Weighted Average Amortization Period	Cost		Accumulated Amortization		Net
Completed technologies	6.6 years	$	34,361	$	13,311	$	21,050
Customer relationships	4.6 years	20,168		12,905		7,263
Trade names	4.7 years	988		567		421
Total intangible assets		$	55,517	$	26,783	$	28,734

Amortization expense related to acquired intangible assets was $4.7 million and $1.9 million for the three months ended June 30, 2022 and 2021, respectively, and $9.2 million and $5.2 million during the nine months ended June 30, 2022 and 2021, respectively, and is recorded within amortization and acquisition-related costs on the consolidated statements of operations and comprehensive income (loss).

The estimated future amortization expense related to intangible assets for each of the five succeeding fiscal years is expected to be as follows (amounts shown in thousands):


	Estimated Future Amortization Expense
2022—remaining	$	4,649
2023	16,744
2024	14,570
2025	13,333
2026	12,151
Thereafter	24,296
Total	$	85,743