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Goodwill and Intangible Assets | 9 Months Ended
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Sep. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Intangible Assets | 6. Goodwill and Intangible Assets 2023 Goodwill Impairment 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 of such decrease on its goodwill, definite-lived intangibles, and other long-lived assets as of September 30, 2023. During 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 experienced a triggering event prompting impairment assessments of goodwill and long-lived assets including definite-lived intangibles. As such, the Company assessed the definite-lived intangible assets or other long-lived assets for impairment by performing an undiscounted cash flow analysis to establish fair value. The significant estimates used in fair value methodology, which are based on Level 3 inputs, include the Company's expectations for future operations and projected cash flows, including revenue, gross margin and operating expenses. The assessment did not result in an impairment of definite-lived intangible assets or other long-lived assets, as they passed the recoverability test. However, the Company did identify 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 $78,894 and $436,479 non-deductible, non-cash goodwill impairment charge for three and nine months ended September 30, 2023. This resulted in the remaining goodwill balance to be written down to $0. Identified Intangible Assets Identified intangible assets consist of the following:
|  | Gross Amount |  |  | Accumulated Amortization |  |  | Carrying Value |  |  | Weighted Average Remaining Life |
September 30, 2024 |  |  |  |  |  |  |  |  |  |  |  |
Customer relationships |  | $ | 80,962 |  |  | $ | (39,327 | ) |  |  | 41,635 |  |  |  | 5.9 |
Contractor relationships |  |  | 535 |  |  |  | (360 | ) |  |  | 175 |  |  |  | 4.3 |
Tradename |  |  | 14,441 |  |  |  | (7,163 | ) |  |  | 7,278 |  |  |  | 3.4 |
Technology |  |  | 90,654 |  |  |  | (56,518 | ) |  |  | 34,136 |  |  |  | 2.6 |
Internally developed software |  |  | 37,902 |  |  |  | (12,251 | ) |  |  | 25,651 |  |  |  | 3.4 |
|  | $ | 224,494 |  |  | $ | (115,619 | ) |  | $ | 108,875 |  |  |  |
|  | Gross Amount |  |  | Accumulated Amortization |  |  | Carrying Value |  |  | Weighted Average Remaining Life |
December 31, 2023 |  |  |  |  |  |  |  |  |  |  |  |
Customer relationships |  | $ | 80,558 |  |  | $ | (33,109 | ) |  |  | 47,449 |  |  |  | 6.5 |
Contractor relationships |  |  | 535 |  |  |  | (329 | ) |  |  | 206 |  |  |  | 5.0 |
Trade name |  |  | 14,303 |  |  |  | (5,389 | ) |  |  | 8,914 |  |  |  | 4.1 |
Technology |  |  | 90,204 |  |  |  | (45,482 | ) |  |  | 44,722 |  |  |  | 3.3 |
Internally developed software |  |  | 25,210 |  |  |  | (6,253 | ) |  |  | 18,957 |  |  |  | 2.4 |
|  | $ | 210,810 |  |  | $ | (90,562 | ) |  | $ | 120,248 |  |  |  |
The Company capitalized $4,718 in the three months ended September 30, 2024 and $12,690 in the nine months ended September 30, 2024, in each case related to internally developed software to be sold as a service incurred during the application development stage. The Company is amortizing these costs over the expected lives of the related services. Amortization expense related to intangible assets for the three months ended September 30, 2024 and 2023 was $8,228 and $8,196, respectively. Amortization expense related to intangible assets for the nine months ended September 30, 2024 and 2023 was $24,505 and $22,693, respectively. Estimated future amortization expense of the identified intangible assets as of September 30, 2024, is as follows:
2024 |  | $ | 8,697 |
2025 |  |  | 35,666 |
2026 |  |  | 25,108 |
2027 |  |  | 14,200 |
2028 |  |  | 11,702 |
Thereafter |  |  | 13,502 |
|  | $ | 108,875 |

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 30 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/350-30/tableOfContent Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/350-20/tableOfContent + Details
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