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Note 3 - Intangible Assets, Net

6 Months Ended

Jun. 30, 2023

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, 2023*			*December 31, 2022*
Gross amount:
Software developed for internal use		3	$	16,664			13,740
Acquired proprietary technology		3-5		16,972			15,965
Customer relationships		5-10		39,168			38,068
Trade names		4-20		16,657			16,657
Domain names		20		195			195
Databases		5-10		31,292			31,292
Non-competition agreements		2-5		1,768			1,768
				122,716			117,685
Total gross amount
Accumulated amortization:
Software developed for internal use				(10,007	)		(8,097	)
Acquired proprietary technology				(14,825	)		(14,305	)
Customer relationships				(36,202	)		(35,156	)
Trade names				(6,484	)		(6,038	)
Domain names				(72	)		(68	)
Databases				(24,833	)		(23,508	)
Non-competition agreements				(1,768	)		(1,768	)
Total accumulated amortization				(94,191	)		(88,940	)
Net intangible assets:
Software developed for internal use				6,657			5,643
Acquired proprietary technology				2,147			1,660
Customer relationships				2,966			2,912
Trade names				10,173			10,619
Domain names				123			127
Databases				6,459			7,784
Total intangible assets, net			$	28,525		$	28,745

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 a 50% interest in Winopoly, LLC (the "Initial Winopoly Acquisition"), effective April 1, 2020; the acquisition of a 100% interest in True North Loyalty, LLC, (the "True North Acquisition"), effective January 1, 2022 (see Note 11, Business acquisition), and the consolidation of TAPP, LLC ("TAPP") effective January 9, 2023 (see Note 12, Variable Interest Entity).

The Company completed its quarterly triggering event assessments for the three months ended June 30, 2023 and has determined that the effect of the recently imposed regulatory requirements on the Company constituted a triggering event. The Company conducted an interim test of the recoverability of its long-lived assets, which compared projected undiscounted cash flows to the carrying value of the asset group. The results of this approach indicated that its long-lived assets were not impaired.

FLUENT, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)

(Amounts in thousands, except share and per share data)

(unaudited)

Amortization expense of $2,995 and $3,218 for the three months ended June 30, 2023 and 2022, respectively, and $5,251 and $6,359 for the six months ended June 30, 2023 and 2022, respectively, is included in depreciation and amortization expenses in the consolidated statements of operations. As of June 30, 2023, intangible assets with a carrying amount of $1,184, 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, 2023, estimated amortization expenses related to the Company's intangible assets for the remainder of 2023 and through 2028 and thereafter are as follows:

Year	*June 30, 2023*
Remainder of 2023	$	6,636
2024		8,676
2025		6,360
2026		2,765
2027		1,657
2028 and thereafter		2,431
Total	$	28,525