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GOODWILL AND INTANGIBLE ASSETS, NET

12 Months Ended

Dec. 31, 2022

NOTE 11: — GOODWILL AND INTANGIBLE ASSETS, NET

Composition and changes:

2022:


					Trade		Customer		Customer
	Goodwill		Technology		Name		relationships		database		Total
Cost:
Balance as of January 1, 2022	$	8,021	$	3,509	$	85	$	3,508	$	200	$	15,323
Initially consolidated company		7,607		3,762		—		1,972		—		13,341
Balance as of December 31, 2022		15,628		7,271		85		5,480		200		28,664
Accumulated amortization and impairment:
Balance as of January 1, 2022		—		378		85		1,372		171		2,006
Amortization recognized in the year		—		764		—		772		29		1,565
Balance as of December 31, 2022		—		1,142		85		2,144		200		3,571
Amortized cost at December 31, 2022	$	15,628	$	6,129	$	—	$	3,336	$	—	$	25,093

2021:


					Trade		Customer		Customer
	Goodwill		Technology		Name		relationships		database		Total
Cost:
Balance as of January 1, 2021	$	2,298	$	378	$	85	$	2,658	$	200	$	5,619
Initially consolidated company		5,723		1,763		—		850		—		8,336
Purchases		—		1,368		—		—		—		1,368
Balance as of December 31, 2021		8,021		3,509		85		3,508		200		15,323
Accumulated amortization and impairment:
Balance as of January 1, 2021		—		378		69		1,115		91		1,653
Amortization recognized in the year		—		—		16		257		80		353
Balance as of December 31, 2021		—		378		85		1,372		171		2,006
Amortized cost at December 31, 2021	$	8,021	$	3,131	$	—	$	2,136	$	29	$	13,317

In August 2016, the Company purchased all of WebCargo’s shares. Total deal consideration was $5,293. The goodwill acquired in the amount of $2,298 was allocated to the Company’s Solutions operating segment and is tested since acquisition annually for impairment, on December 31st of each year. No impairment was recorded during the years ended December 31, 2022 and 2021.

In December 2021, the Company acquired the interlining technology and other assets of a major airline group pursuant to a purchase agreement entered into in September 2021. In consideration for the purchase the Company issued 158,327 Series C Preferred shares to the seller at closing, valued at a total amount of $1,368. The seller may also earn up to 316,658 Ordinary shares subject to the Company achieving certain commercial milestones using the acquired interlining platform. The seller agreed to use exclusively the Company’s interlining platform for a period of time and will be entitled to a revenue share participation in connection with the commercialization of the interlining technology acquired by the Company.

In December 2021, the Company acquired all of the membership interests of 7LFreight, a US company engaged in the business of freight rate management SaaS. For details on acquired intangible assets and goodwill see Note 5b.

NOTE 11: — GOODWILL AND INTANGIBLE ASSETS, NET (continued)

In February 2022, the Company acquired all of the shares of Clearit Customs Services, Inc., a US company, and the digital customs brokerage business assets from its related Canadian company. For details on acquired intangible assets and goodwill see Note 5a.

Amortization expenses of technology assets for the year ended December 31, 2022 in the amount of $764 was included as part of the cost of revenue in the consolidated statements of profit or loss. Amortization expenses of trade name, customer relationship and customer database for the years ended December 31, 2022 and 2021 in the amounts of $801 and $353, respectively, were included as part of sales and marketing expenses in the consolidated statements of profit or loss.