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Intangible Assets and Goodwill

6 Months Ended

Jun. 30, 2025

8. Intangible Assets and Goodwill

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

	June 30, 2025							December 31, 2024
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Customer relationships	$	26,073	$	(8,403	)	$	17,670	$	26,073	$	(7,403	)	$	18,670
Developed technologies		4,900		(3,446	)		1,454		4,900		(3,081	)		1,819
Trademark and trade names		400		(400	)		-		400		(361	)		39
Capitalized software development costs		410		(103	)		307		-		-			-
Total acquired intangible assets	$	31,783	$	(12,352	)	$	19,431	$	31,373	$	(10,845	)	$	20,528

As of June 30, 2025, the weighted average remaining useful life for customer relationships was 11.9 years, developed technologies was 1.9 years, and capitalized software development costs was 0.8 years.

Amortization expense for customer relationships intangible assets is included in selling and marketing expenses, amortization expense for developed technologies intangible assets is included in cost of software solutions revenue, amortization expense for trademark and trade name intangible assets is included in general and administrative expenses, amortization expense for capitalized software development costs intangible assets is included in general and administrative expenses. The following table summarizes the amortization expense by financial statement line item (in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2025		2024		2025		2024
Cost of software solutions revenue	$	183	$	203	$	365	$	406
Selling and marketing		499		526		1,000		1,053
General and administrative		119		29		142		59
Total amortization expense	$	801	$	758	$	1,507	$	1,518

As of June 30, 2025, 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,
2025 remaining	$	1,570
2026		2,560
2027		2,202
2028		1,637
2029		1,557
2030 and thereafter		9,905
Total	$	19,431

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

	Goodwill
Balance at January 1, 2024	$	9,454
Additions		-
Balance at December 31, 2024	$	9,454
Additions		-
Balance at June 30, 2025	$	9,454