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Note 3 - Intangible Assets, Net

9 Months Ended

Sep. 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)*		*September 30, 2020*			*December 31, 2019*
Gross amount:
Software developed for internal use		3	$	6,656		$	4,866
Acquired proprietary technology		3-5		14,735			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				109,185			105,721
Accumulated amortization:
Software developed for internal use				(3,181	)		(1,995	)
Acquired proprietary technology				(11,816	)		(9,516	)
Customer relationships				(23,334	)		(19,396	)
Trade names				(4,029	)		(3,359	)
Domain names				(46	)		(39	)
Databases				(16,889	)		(14,182	)
Non-competition agreements				(1,741	)		(1,631	)
Total accumulated amortization				(61,036	)		(50,118	)
Net intangible assets:
Software developed for internal use				3,475			2,871
Acquired proprietary technology				2,919			4,145
Customer relationships				14,552			17,890
Trade names				12,628			13,298
Domain names				145			152
Databases				14,403			17,110
Non-competition agreements				27			137
Total intangible assets, net			$	48,149		$	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).

The Company determined that the effects of the macroeconomic conditions arising during the three months ended June 30, 2020 from the global COVID-19 pandemic and the social unrest throughout the United States, 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 as of June 30, 2020. 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, were reasonable. The Company completed its quarterly trigger event assessment for the three months ended September 30, 2020 and determined that no triggering event had occurred requiring further interim impairment assessments for its long-lived assets.

Amortization expense of $3,711 and $3,456 for the three months ended September 30, 2020 and 2019, respectively, and $10,917 and $9,708, for the nine months ended September 30, 2020 and 2019, respectively, is included in depreciation and amortization expenses in the consolidated statements of operations. As of September 30, 2020, intangible assets with a carrying amount of $693, 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 September 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	*September 30, 2020*
Remainder of 2020	$	3,579
2021		11,953
2022		10,492
2023		5,194
2024		4,470
2025 and thereafter		12,461
Total	$	48,149