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Note 3 - Intangible Assets, Net

6 Months Ended

Jun. 30, 2020

Intangible Assets Disclosure [Text Block]

3. Intangible assets, net

Intangible assets, net, other than goodwill, consist of the following:

	*Amortization period (in years)*		*June 30, 2020*			*December 31, 2019*
Gross amount:
Software developed for internal use		3	$	5,987		$	4,866
Acquired proprietary technology		3-5		14,638			13,661
Customer relationships		5-10		37,886			37,286
Trade names		4-20		16,657			16,657
Domain names		20		191			191
Databases		5-10		31,292			31,292
Non-competition agreements		2-5		1,768			1,768
Total gross amount				108,419			105,721
Accumulated amortization:
Software developed for internal use				(2,752	)		(1,995	)
Acquired proprietary technology				(11,021	)		(9,516	)
Customer relationships				(22,011	)		(19,396	)
Trade names				(3,806	)		(3,359	)
Domain names				(44	)		(39	)
Databases				(15,987	)		(14,182	)
Non-competition agreements				(1,704	)		(1,631	)
Total accumulated amortization				(57,325	)		(50,118	)
Net intangible assets:
Software developed for internal use				3,235			2,871
Acquired proprietary technology				3,617			4,145
Customer relationships				15,875			17,890
Trade names				12,851			13,298
Domain names				147			152
Databases				15,305			17,110
Non-competition agreements				64			137
Total intangible assets, net			$	51,094		$	55,603

The amounts relating to acquired proprietary technology, customer relationships, trade names, domain names, databases and non-competition agreements primarily represent the fair values of intangible assets acquired as a result of the acquisition of Fluent, LLC, effective December 8, 2015 (the "Fluent LLC Acquisition"), the acquisition of Q Interactive, LLC, effective June 8, 2016 (the "Q Interactive Acquisition"), the acquisition of substantially all the assets of AdParlor Holdings, Inc. and certain of its affiliates, effective July 1, 2019 (the "AdParlor Acquisition"), and the acquisition of a 50% interest in Winopoly, LLC (the "Winopoly Acquisition"), effective April 1, 2020 (see Note 11, Business acquisitions).

During the three months ended June 30, 2020, the Company determined that the effects of the macroeconomic conditions arising from the global COVID-19 pandemic and the social unrest throughout the United States during June 2020, which changed the media-buying patterns of certain customers directly impacting the All Other reporting unit, constituted an impairment triggering event. As such, the Company conducted an interim test of the recoverability of its long-lived assets. Based on the results of this recoverability test, which measured the Company's projected undiscounted cash flows as compared to the carrying value of the asset group, the Company determined that, as of June 30, 2020, its long-lived assets were not impaired. Management believes that the assumptions utilized in this interim impairment testing, including the determination of estimated future cash flows, are reasonable. Future tests may indicate impairment if actual future cash flows or other factors differ from the assumptions used in the Company's interim impairment test at June 30, 2020.

Amortization expense of $3,659 and $3,127 for the three months ended June 30, 2020 and 2019, respectively, and $7,206 and $6,252, for the six months ended June 30, 2020 and 2019, respectively, is included in depreciation and amortization expenses in the consolidated statements of operations. As of June 30, 2020, intangible assets with a carrying amount of $633, included in the gross amount of software developed for internal use, have not commenced amortization, as they are not ready for their intended use.

As of June 30, 2020, estimated amortization expense related to the Company's intangible assets for the remainder of 2020 and through 2025 and thereafter are as follows:

Year	*June 30, 2020*
Remainder of 2020	$	7,266
2021		11,674
2022		10,341
2023		4,912
2024		4,470
2025 and thereafter		12,431
Total	$	51,094