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Note 3 - Intangible Assets, Net

6 Months Ended

Jun. 30, 2022

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, 2022*			*December 31, 2021*
Gross amount:
Software developed for internal use		3	$	11,757			9,552
Acquired proprietary technology		3-5		15,824			14,844
Customer relationships		5-10		38,068			37,886
Trade names		4-20		16,657			16,657
Domain names		20		195			191
Databases		5-10		31,292			31,292
Non-competition agreements		2-5		1,768			1,768
Total gross amount				115,561			112,190
Accumulated amortization:
Software developed for internal use				(6,546	)		(5,263	)
Acquired proprietary technology				(13,851	)		(13,402	)
Customer relationships				(32,685	)		(29,948	)
Trade names				(5,592	)		(5,145	)
Domain names				(63	)		(58	)
Databases				(22,184	)		(20,859	)
Non-competition agreements				(1,768	)		(1,768	)
Total accumulated amortization				(82,689	)		(76,443	)
Net intangible assets:
Software developed for internal use				5,211			4,289
Acquired proprietary technology				1,973			1,442
Customer relationships				5,383			7,938
Trade names				11,065			11,512
Domain names				132			133
Databases				9,108			10,433
Total intangible assets, net			$	32,872		$	35,747

The gross amounts associated with software developed for internal use primarily represents the capitalized costs of internally developed software. 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, LLC. and certain of its affiliates, effective July 1, 2019 (the "AdParlor Acquisition"), the acquisition of a 50% interest in Winopoly (the "Initial Winopoly Acquisition"), effective April 1, 2020 (Note 11, Business acquisition), and the acquisition of 100% interest in True North Loyalty, LLC. (the "True North Acquisition"), effective January 1, 2022 (Note 11, Business acquisition). In connection with the Initial Winopoly Acquisition, the Company recorded 100% equity ownership for GAAP purposes due to Winopoly's status as a VIE for which the Company is a primary beneficiary, so no further intangible assets were acquired in connection with the Full Winopoly Acquisition described in Note 11, Business acquisition.

During the second quarter of 2022, the Company determined that the decline in its publicly traded stock price which resulted in a corresponding decline in its market capitalization 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 June 30, 2022, its long-lived assets were not impaired. The Company believes that the assumptions utilized in this interim impairment testing, including the estimation of future cash flows, were 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, 2022.

Amortization expense of $3,218 and $3,169 for the three months ended June 30, 2022 and 2021, respectively, and $6,359 and $6,346, for the six months ended June 30, 2022 and 2021, respectively, is included in depreciation and amortization expenses in the consolidated statements of operations. As of June 30, 2022, intangible assets with a carrying amount of $1,116, 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, 2022, estimated amortization expense related to the Company's intangible assets for the remainder of 2022 and through 2027 and thereafter are as follows:

Year	*June 30, 2022*
Remainder of 2022	$	5,453
2023		6,719
2024		6,615
2025		5,301
2026		1,385
2027 and thereafter		7,399
Total	$	32,872