GOODWILL AND OTHER INTANGIBLE ASSETS

9 Months Ended

Sep. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]


	December 31, 2022		Acquisitions		September 30, 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 September 30, 2023, there has been no impairment of goodwill based on the qualitative assessments performed by the Company.


Gross Intangible Assets	December 31, 2022		Acquisitions		September 30, 2023
Customer relationships	$	116,971	$	—	$	116,971
Developed technology	12,001		—		12,001
Reseller relationships	1,344		1,029		2,373
Trade names	880		—		880
Non-compete agreements	1,032		—		1,032
	$	132,228	$	1,029	$	133,257

The gross carrying amount and accumulated amortization of our intangible assets as of September 30, 2023 are as follows (in thousands, except weighted average periods):


	Weighted Average Amortization Period (in Years)	Gross		Accumulated Amortization		Net
September 30, 2023
Customer relationships	8.7	$	116,971	$	(62,498)	$	54,473
Developed technology	6.9	12,001		(10,651)		1,350
Reseller relationships	6.4	2,373		(985)		1,388
Trade names	4.3	880		(872)		8
Non-compete agreements	5.2	1,032		(925)		107
	8.5	$	133,257	$	(75,931)	$	57,326

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 $9,929 and $10,134 for the nine months ended September 30, 2023 and 2022, respectively. Amortization expenses recorded in Cost of Sales were $368 and $889 for the nine months ended September 30, 2023 and 2022, respectively. There was no impairment of intangibles during the nine months ended September 30, 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 September 30, 2023 (in thousands):


2023	$	3,389
2024	13,522
2025	12,736
2026	9,621
2027	7,426
2028	5,957
Thereafter	4,675
	$	57,326