GOODWILL AND OTHER INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure [Text Block]

NOTE 5 - GOODWILL AND OTHER INTANGIBLE ASSETS


	2022		Acquisitions		2023
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, 2023, there has been no impairment of goodwill based on the qualitative assessments we have performed.


Gross Intangible Assets	2022		Acquisitions		2023
Customer relationships	$	118,315	$	9,528	$	127,843
Developed technology	12,001		—		12,001
Trade names	880		—		880
Non-compete agreements	1,032		—		1,032
	$	132,228	$	9,528	$	141,756

The gross carrying amount and accumulated amortization of our intangible assets as of December 31, 2023 and 2022 are as follows (in thousands, except weighted average periods):


	Weighted Average Amortization Period (in Years)	Gross		Accumulated Amortization		Net
December 31, 2023
Customer relationships	8.5	$	127,843	$	(67,165)	$	60,678
Developed technology	6.9	12,001		(10,701)		1,300
Trade names	4.3	880		(880)		—
Non-compete agreements	5.2	1,032		(928)		104
	8.3	$	141,756	$	(79,674)	$	62,082

December 31, 2022
Customer relationships	8.7	$	118,315	$	(53,589)	$	64,726
Developed technology	6.6	12,001		(10,283)		1,718
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 $13,623 and $13,486 for the years ended December 31, 2023 and 2022, respectively. Amortization expenses recorded in cost of sales were $418 and $1,186 for the years ended December 31, 2023 and 2022, respectively. There was no impairment of intangibles during the year ended December 31, 2023 based on the qualitative assessment we performed. 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, 2023 (in thousands):


2024	$	14,939
2025	14,153
2026	11,038
2027	8,843
2028	7,374
Thereafter	5,735
	$	62,082