Goodwill and Intangible Assets

6 Months Ended

Mar. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

6. GOODWILL AND INTANGIBLE ASSETS

Goodwill

The Company had a goodwill balance of $130.1 million at March 31, 2023, representing the excess of costs over fair value of assets of businesses acquired. The following table summarizes changes in the balance of goodwill during the six months ended March 31, 2023 (amounts shown in thousands):


Balance at September 30, 2022	$	120,186
Foreign currency effect on goodwill	9,962
Balance at March 31, 2023	$	130,148

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 March 31, 2023 and September 30, 2022, respectively, are summarized as follows (amounts in thousands, except for years):


March 31, 2023:	Weighted Average Amortization Period (in years)	Cost		Accumulated Amortization		Net
Completed technologies	6.9	$	95,761	$	32,601	$	63,160
Customer relationships	4.7	25,168		20,038		5,130
Trade names	5.0	7,088		2,299		4,789
Covenants not to compete	3.0	600		229		371
Total intangible assets		$	128,617	$	55,167	$	73,450


September 30, 2022:	Weighted Average Amortization Period (in years)	Cost		Accumulated Amortization		Net
Completed technologies	6.9	$	95,761	$	32,265	$	63,496
Customer relationships	4.7	25,168		18,241		6,927
Trade names	5.0	7,088		2,174		4,914
Covenants not to compete	3.0	600		181		419
Total intangible assets		$	128,617	$	52,861	$	75,756

Amortization expense related to acquired intangible assets was $4.5 million and $2.4 million for the three months ended March 31, 2023 and 2022, respectively, and $9.0 million and $4.5 million during the six months ended March 31, 2023 and, 2022, respectively, and is recorded within amortization and acquisition-related costs on the condensed consolidated statements of operations and other 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 in thousands):


	Estimated Future Amortization Expense
2023 - remaining	7,995
2024	14,838
2025	13,574
2026	12,345
2027	11,217
Thereafter	13,481
Total	$	73,450