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Goodwill and Intangible Assets | 6 Months Ended
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Jun. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Intangible Assets | 7. Goodwill and Intangible Assets Goodwill consisted of the following:
|  | Six Months Ended June 30, 2023 |  |
Beginning Balance as of January 1 |  | $ | 435,279 |  |
Goodwill impairment |  |  | (357,585 | ) |
Currency translation adjustments |  |  | 1,727 |  |
Ending Balance |  | $ | 79,421 |  |
As a result of sustained decreases in the Company's publicly quoted share price and market capitalization during 2023, the Company considered the potential impact on its goodwill, definite-lived intangibles, and other long-lived assets as of June 30, 2023. As a result of this review, the Company did not identify any triggering events that would result in impairment to its definite-lived intangible assets or other long-lived assets. The Company identified indicators of goodwill impairment for the single reporting unit which required an interim goodwill impairment assessment. In performing the quantitative assessment of goodwill, our reporting unit’s carrying amount exceeded its fair value. The Company estimated the reporting unit's fair value based on the market capitalization and a related control premium of 30% (amount paid by a new controlling shareholder for the benefits resulting from synergies and other potential benefits derived from controlling the acquired company). The Company evaluates the implied control premium or discount by comparing it to control premiums or discounts of recent comparable market transactions, as applicable. As a result of the interim quantitative impairment assessment, the Company recorded a $27,276 and $357,585 non-deductible, non-cash goodwill impairment charge for three and six months ended June 30, 2023. When considering a hypothetical sensitivity analysis to our goodwill assessment in future periods, should a triggering event be identified, a further 10% decline in our stock price could result in an impairment charge of approximately $50,000. Identified intangible assets consisted of the following:
|  | Gross Amount |  |  | Accumulated Amortization |  |  | Carrying Value |  |  | Weighted Average Remaining Life |
June 30, 2023 |  |  |  |  |  |  |  |  |  |  |  |
Customer relationships |  | $ | 80,499 |  |  | $ | (29,015 | ) |  | $ | 51,484 |  |  |  | 7.0 |
Contractor relationships |  |  | 535 |  |  |  | (309 | ) |  |  | 226 |  |  |  | 5.5 |
Tradename |  |  | 14,127 |  |  |  | (4,192 | ) |  |  | 9,935 |  |  |  | 4.6 |
Technology |  |  | 89,634 |  |  |  | (38,062 | ) |  |  | 51,572 |  |  |  | 3.8 |
Internally developed software |  |  | 23,991 |  |  |  | (2,255 | ) |  |  | 21,736 |  |  |  | 2.7 |
|  | $ | 208,786 |  |  | $ | (73,833 | ) |  | $ | 134,953 |  |  |  |
|  | Gross Amount |  |  | Accumulated Amortization |  |  | Carrying Value |  |  | Weighted Average Remaining Life |
December 31, 2022 |  |  |  |  |  |  |  |  |  |  |  |
Customer relationships |  | $ | 80,168 |  |  | $ | (24,919 | ) |  | $ | 55,249 |  |  |  | 7.4 |
Contractor relationships |  |  | 535 |  |  |  | (288 | ) |  |  | 247 |  |  |  | 6.0 |
Trade name |  |  | 14,012 |  |  |  | (3,050 | ) |  |  | 10,962 |  |  |  | 5.0 |
Technology |  |  | 89,262 |  |  |  | (30,895 | ) |  |  | 58,367 |  |  |  | 4.2 |
Internally developed software |  |  | 10,155 |  |  |  | — |  |  |  | 10,155 |  |  |  | 3.0 |
|  | $ | 194,132 |  |  | $ | (59,152 | ) |  | $ | 134,980 |  |  |  |
The Company capitalized $7,085 and $13,836 of costs during the three and six months ended June 30, 2023, related to internally developed software to be sold as a service incurred during the application development stage and is amortizing these costs over the expected lives of the related services. Amortization expense related to intangible assets for the three months ended June 30, 2023 and 2022 was $7,565 and $6,328, respectively. Amortization expense related to intangible assets for the six months ended June 30, 2023 and 2022 was $14,497 and $12,514, respectively. Estimated future amortization expense of the identified intangible assets as of June 30, 2023, is as follows:
2023 |  | $ | 16,346 |
2024 |  |  | 32,659 |
2025 |  |  | 32,643 |
2026 |  |  | 22,061 |
2027 |  |  | 11,331 |
Thereafter |  |  | 19,913 |
|  | $ | 134,953 |

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