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Intangible Assets and Goodwill

6 Months Ended

Jun. 30, 2021

8. Intangible Assets and Goodwill

Acquired intangible assets subject to amortization consist of the following (in thousands):

	June 30, 2021							December 31, 2020
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Customer relationships	$	19,883	$	(1,097	)	$	18,786	$	1,171	$	(919	)	$	252
Developed technologies		5,047		(90	)		4,957		-		-			-
Total acquired intangible assets	$	24,930	$	(1,187	)	$	23,743	$	1,171	$	(919	)	$	252

As of June 30, 2021, the weighted average remaining useful life for customer relationships was 8.7 years and developed technologies was 5.9 years.

Amortization expense for customer relationships intangible assets is included in general and administrative expenses and totaled $120,000 and $16,000 for the three months ended June 30, 2021 and 2020, respectively, and totaled $177,000 and $46,000 for the six months ended June 30, 2021 and 2020, respectively. Amortization expense for developed technologies intangible assets is included in cost of software solutions revenue and totaled $90,000 and $0 for the three and six months ended June 30, 2021 and 2020, respectively.

During the three months ended June 30, 2021, the Company acquired $21,520,000 in intangible assets in connection with the NetSapiens business acquisition. During the three months ended March 31, 2021, the Company acquired $2,238,000 in intangible assets in connection with the Centric Telecom business acquisition. During the year ended December 31, 2020, we reduced customer relationships by $121,000 due to an adjustment to the total consideration payable under the DoubleHorn customer relationships asset purchase agreement.

As of June 30, 2021, annual amortization of definite lived intangible assets, based on existing intangible assets and current useful lives, is estimated to be the following (in thousands):

Year ending December 31,
2021 remaining	$	1,012
2022		2,110
2023		2,553
2024		2,849
2025 and thereafter		15,218
Total	$	23,743

The following table provides a summary of changes in the carrying amounts of goodwill (in thousands):

	Goodwill
Balance at December 31, 2020		272
Centric Telecom business acquisition		1,123
NetSapiens business acquisition		26,734
Balance at June 30, 2021	$	28,129