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Intangible Assets and Goodwill

9 Months Ended

Sep. 30, 2024

8. Intangible Assets and Goodwill

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

	September 30, 2024							December 31, 2023
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Customer relationships	$	26,073	$	(6,869	)	$	19,204	$	26,073	$	(5,260	)	$	20,813
Developed technologies		4,900		(2,878	)		2,022		4,900		(2,269	)		2,631
Trademark and trade names		400		(343	)		57		400		(288	)		112
Total acquired intangible assets	$	31,373	$	(10,090	)	$	21,283	$	31,373	$	(7,817	)	$	23,556

As of September 30, 2024, the weighted average remaining useful life for customer relationships was 12.6 years and developed technologies was 2.7 years and trademarks and trade names was 0.7 years.

Amortization expense for customer relationships intangible assets is included in selling and marketing expenses and totaled $526 and $552 for the three months ended September 30, 2024 and 2023, respectively, and $1,579 and $1,630 for the nine months ended September 30, 2024 and 2023, respectively. Amortization expense for developed technologies intangible assets is included in cost of software solutions revenue and totaled $203 and $215 for the three months ended September 30, 2024 and 2023, respectively, and $609 and $662 for the nine months ended September 30, 2024 and 2023, respectively. Amortization expense for trademark and trade name intangible assets is included in general and administrative expenses and totaled $26 and $25 for the three months ended September 30, 2024 and 2023, respectively, and $85 and $102 for the nine months ended September 30, 2024 and 2023, respectively.

As of September 30, 2024, 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,
2024 remaining	$	755
2025		2,770
2026		2,457
2027		2,202
2028		1,637
2029 and thereafter		11,462
Total	$	21,283

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

	Goodwill
Balance at January 1, 2023	$	9,454
Additions		-
Balance at December 31, 2023	$	9,454
Additions		-
Balance at September 30, 2024	$	9,454