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Note 3 - Intangible Assets, Net

9 Months Ended

Sep. 30, 2021

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, 2021*			*December 31, 2020*
Gross amount:
Software developed for internal use		3	$	8,963		$	7,376
Acquired proprietary technology		3-5		14,845			14,788
Customer relationships		5-10		37,885			37,886
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				111,601			109,958
Accumulated amortization:
Software developed for internal use				(4,811	)		(3,551	)
Acquired proprietary technology				(13,169	)		(12,474	)
Customer relationships				(28,626	)		(24,657	)
Trade names				(4,922	)		(4,252	)
Domain names				(55	)		(48	)
Databases				(20,197	)		(17,791	)
Non-competition agreements				(1,768	)		(1,768	)
Total accumulated amortization				(73,548	)		(64,541	)
Net intangible assets:
Software developed for internal use				4,152			3,825
Acquired proprietary technology				1,676			2,314
Customer relationships				9,259			13,229
Trade names				11,735			12,405
Domain names				136			143
Databases				11,095			13,501
Total intangible assets, net			$	38,053		$	45,417

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 (the "Initial Winopoly Acquisition"), effective April 1, 2020 (see Note 11, Business acquisition). In connection with the Initial Winopoly Acquisition, the Company recorded 100% equity ownership for GAAP purposes, and no further intangible assets were acquired in connection with the Full Winopoly Acquisition described in Note 11, Business acquisition.

During the three months ended March 31, 2021, the Company determined that the reduction in operating results of the Fluent reporting unit, along with a decline in the market value of its publicly-traded stock, collectively constituted a 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 March 31, 2021, its long-lived assets were not impaired. Management believes that the assumptions utilized in this interim impairment testing, including the estimation of future cash flows, were reasonable. The Company completed its quarterly triggering event assessments for the three months ended June 30, 2021 and September 30, 2021 and has determined that no triggering event had occurred requiring further impairment assessments for its long lived assets.

Amortization expense of $3,006 and $3,711 for the three months ended September 30, 2021 and 2020, respectively, and $9,352 and $10,917, for the nine months ended September 30, 2021 and 2020, respectively, is included in depreciation and amortization expenses in the consolidated statements of operations. As of September 30, 2021, intangible assets with a carrying amount of $592, 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, 2021, estimated amortization expense related to the Company's intangible assets for the remainder of 2021 and through 2026 and thereafter are as follows:

Year	*September 30, 2021*
Remainder of 2021	$	3,027
2022		11,843
2023		6,104
2024		4,618
2025		4,024
2026 and thereafter		8,437
Total	$	38,053