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GOODWILL AND INTANGIBLE ASSETS-NET
 3 Months Ended
Mar. 31, 2026
Intangible Asset, Goodwill and Other [Abstract]  
GOODWILL AND INTANGIBLE ASSETS-NET

 

5.GOODWILL AND INTANGIBLE ASSETS-NET

 

Goodwill consists of the excess of the purchase price over the fair value of identifiable net assets of businesses acquired. At March 31, 2026 and December 31, 2025, approximately $90,000 of goodwill was allocated to the Medical Practice Management segment and the balance was allocated to the Healthcare IT segment.

 

 

The following is the summary of the carrying amount of goodwill for the three months ended March 31, 2026 and the year ended December 31, 2025:

 

   Three Months Ended   Year Ended 
   March 31, 2026   December 31, 2025 
   ($ in thousands) 
Beginning gross balance  $31,442   $19,186 
Additions   -    12,256 
Adjustment   (7)   - 
Ending gross balance  $31,435   $31,442 

 

Intangible assets – net as of March 31, 2026 and December 31, 2025 consist of the following:

 

   March 31, 2026   December 31, 2025 
   ($ in thousands) 
Contracts and relationships acquired  $54,973   $54,973 
Capitalized software   39,171    38,329 
Non-compete agreements   1,236    1,236 
Other intangible assets   10,529    10,529 
Total intangible assets   105,909    105,067 
Less: Accumulated amortization   89,409    86,099 
Intangible assets - net  $16,500   $18,968 

 

Capitalized software represents payroll and development costs incurred for internally developed software. Other intangible assets primarily represent purchased intangibles. Amortization expense for the three months ended March 31, 2026 and 2025 was approximately $3.3 million and $2.8 million, respectively. The weighted-average amortization period remaining is approximately two years.

 

As of March 31, 2026, future amortization is scheduled to be expensed as follows:

 

Years ending March 31,  ($ in thousands) 
2026 (nine months)  $6,947 
2027   5,315 
2028   2,983 
2029   1,105 
2030   150 
Total  $16,500