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Note 6 - Intangible Assets, Net

12 Months Ended

Dec. 31, 2022

Intangible Assets Disclosure [Text Block]

6. Intangible assets, net

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

(In thousands)	*Amortization period (years)*		*December 31, 2022*			*December 31, 2021*
Gross amount:
Software developed for internal use		3	$	13,740		$	9,552
Acquired proprietary technology		3 - 5		15,965			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
				117,685			112,190
Accumulated amortization:
Software developed for internal use				(8,097	)		(5,263	)
Acquired proprietary technology				(14,305	)		(13,402	)
Customer relationships				(35,156	)		(29,948	)
Trade names				(6,038	)		(5,145	)
Domain names				(68	)		(58	)
Databases				(23,508	)		(20,859	)
Non-competition agreements				(1,768	)		(1,768	)
				(88,940	)		(76,443	)
Net intangible assets:
Software developed for internal use				5,643			4,289
Acquired proprietary technology				1,660			1,442
Customer relationships				2,912			7,938
Trade names				10,619			11,512
Domain names				127			133
Databases				7,784			10,433
			$	28,745		$	35,747

The gross amounts associated with software developed for internal use primarily represent 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 Holdings, Inc. and certain of its affiliates, effective July 1, 2019 (the "AdParlor Acquisition"); the acquisition of 50% interest in Winopoly, LLC (the "Initial Winopoly Acquisition"), effective April 1, 2020 (Note 13, Business acquisitions); and the acquisition of 100% interest in True North Loyalty, LLC, (the "True North Acquisition"), effective January 1, 2022 (Note 13, Business acquisitions). 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 13, Business acquisition.

During the three months ended June 30, 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. The Company continued to see a decline in its market capitalization for the three months ended September 30, 2022 and conducted another recoverability test of its long-lived assets. In addition, for the three months ended December 31, 2022 the Company had lower-than-expected operating results and an additional decline in the market value of its publicly-traded stock, which led to another recoverability test of its long-lived assets to be conducted. Based on the results of the recoverability tests, which measured the Company's projected undiscounted cash flows as compared to the carrying value of the asset group, the Company determined that its long-lived assets were not impaired as of June 30, 2022, September 30, 2022, or December 31, 2022. The Company believes that the assumptions utilized in the impairment tests, including the estimation of future cash flows, were reasonable. Future tests may indicate impairment if actual future cash flows or other factors considered differ from the assumptions used in the prior interim impairment tests.

For the years ended December 31, 2022 and 2021, amortization expenses related to intangible assets, and included in depreciation and amortization expenses in the Company's consolidated statements of operations, were $12,723 and $12,390, respectively.

For the years ended December 31, 2022 and 2021, the Company capitalized $4,480 and $3,074, respectively, most of which was related to internally developed software, and wrote off $186 and $354, respectively, due to abandonment of certain internally developed software whose net carrying values were not recoverable.

As of December 31, 2022, estimated amortization expenses related to the Company’s intangible assets for 2023 through 2028 and thereafter are as follows:

(In thousands)
Year	*December 31, 2022*
2023	$	8,837
2024		6,644
2025		4,589
2026		1,277
2027		828
2028 and thereafter		6,570
Total	$	28,745