GOODWILL AND OTHER INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure [Text Block]

NOTE 5 - GOODWILL AND OTHER INTANGIBLE ASSETS


	2021		Acquisitions		2022
Goodwill	$	86,011	$	—	$	86,011

We believe significant synergies are expected to arise from our strategic acquisitions and their assembled workforces. This factor contributed to a purchase price that was in excess of the fair value of the net assets acquired and, as a result, we recorded goodwill for each acquisition. A portion of acquired goodwill will be amortizable for tax purposes. As of December 31, 2022, there has been no impairment of goodwill based on the qualitative assessments performed by the Company.


Gross Intangible Assets	2021		Acquisitions		2022
Customer relationships	$	114,611	$	2,360	$	116,971
Developed technology	12,001		—		12,001
Reseller relationships	1,012		332		1,344
Trade names	880		—		880
Non-compete agreements	1,032		—		1,032
	$	129,536	$	2,692	$	132,228

The gross carrying amount and accumulated amortization of our intangible assets as of December 31, 2022 are as follows (in thousands, except weighted average periods):


	Weighted Average Amortization Period (in Years)	Gross		Accumulated Amortization		Net
December 31, 2022
Customer relationships	8.7	$	116,971	$	(52,700)	$	64,271
Developed technology	6.6	12,001		(10,283)		1,718
Reseller relationships	6.9	1,344		(889)		455
Trade names	3.0	880		(847)		33
Non-compete agreements	5.2	1,032		(915)		117
	8.4	$	132,228	$	(65,634)	$	66,594

December 31, 2021
Customer relationships	8.7	$	114,611	$	(39,535)	$	75,076
Developed technology	6.6	12,001		(9,098)		2,903
Reseller relationships	7.2	1,012		(864)		148
Trade names	3.0	880		(579)		301
Non-compete agreements	5.2	1,032		(887)		145
	8.4	$	129,536	$	(50,963)	$	78,573

We record amortization expenses using the straight-line method over the estimated useful lives of the intangible assets, as noted above. Amortization expenses recorded in Operating Expenses were $13,486 and $10,948 for the years ended December 31, 2022 and 2021, respectively. Amortization expenses recorded in Cost of Sales were $1,186 and $1,489 for the years ended December 31, 2022 and 2021, respectively. There was no impairment of intangibles during the year ended December 31, 2022 based on the qualitative assessment performed by the Company. However, if market, political and other conditions over which we have no control continue to affect the capital markets and our stock price declines, we may experience an impairment of our intangibles in future quarters.

The following table summarizes the future estimated amortization expense relating to our intangible assets as of December 31, 2022 (in thousands):


2023	$	13,601
2024	13,339
2025	12,553
2026	9,442
2027	7,267
Thereafter	10,392
	$	66,594