GOODWILL AND OTHER INTANGIBLE ASSETS

3 Months Ended

Mar. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure [Text Block]

NOTE 5 - GOODWILL AND OTHER INTANGIBLE ASSETS


	December 31, 2022		Acquisitions		March 31, 2023
Goodwill	$	86,011	$	—	$	86,011

We believe significant synergies are expected to arise from our strategic acquisitions and their assembled work forces. 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 March 31, 2023, there has been no impairment of goodwill based on the qualitative assessments performed by the Company.


Gross Intangible Assets	March 31, 2023
Customer relationships	$	116,971
Developed technology	12,001
Reseller relationships	1,344
Trade names	880
Non-compete agreements	1,032
	$	132,228

The gross carrying amount and accumulated amortization of our intangible assets as of March 31, 2023 are as follows (in thousands, except weighted average periods):


	Weighted Average Amortization Period (in Years)	Gross		Accumulated Amortization		Net
March 31, 2023
Customer relationships	8.7	$	116,971	$	(55,972)	$	60,999
Developed technology	6.6	12,001		(10,551)		1,450
Reseller relationships	6.9	1,344		(908)		436
Trade names	3.0	880		(855)		25
Non-compete agreements	5.2	1,032		(918)		114
	8.4	$	132,228	$	(69,204)	$	63,024

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

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 $3,302 and $3,432 for the three months ended March 31, 2023 and 2022, respectively. Amortization expenses recorded in Cost of Sales were $268 and $296 for the three months ended March 31, 2023 and 2022, respectively. There was no impairment of intangibles during the three months ended March 31, 2023 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 March 31, 2023 (in thousands):


2023	$	10,030
2024	13,338
2025	12,554
2026	9,442
2027	7,267
2028	5,816
Thereafter	4,577
	$	63,024