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Note 6 - Intangible Assets, Net

12 Months Ended

Dec. 31, 2023

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, 2023*			*December 31, 2022*
Gross amount:
Software developed for internal use		3	$	20,175		$	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
				126,227			117,685
Accumulated amortization:
Software developed for internal use				(12,142	)		(8,097	)
Acquired proprietary technology				(15,132	)		(14,305	)
Customer relationships				(37,249	)		(35,156	)
Trade names				(6,893	)		(6,038	)
Domain names				(77	)		(68	)
Databases				(26,157	)		(23,508	)
Non-competition agreements				(1,768	)		(1,768	)
				(99,418	)		(88,940	)
Net intangible assets:
Software developed for internal use				8,033			5,643
Acquired proprietary technology				1,840			1,660
Customer relationships				1,919			2,912
Trade names				9,764			10,619
Domain names				118			127
Databases				5,135			7,784
			$	26,809		$	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 50% interest in Winopoly, LLC (the "Initial Winopoly Acquisition"), effective April 1, 2020; the acquisition of 100% interest in True North Loyalty, LLC, (the "True North Acquisition"), effective January 1, 2022 (Note 13, Business acquisitions); and the consolidation of TAPP Influencers Corp. ("TAPP") effective January 9, 2023 (see Note 14, Variable Interest Entity).

During the three months ended June 30, 2023, the Company determined that the effects of the recently imposed regulatory requirements on the Company constituted a triggering event. The Company also then determined that the decline in the market value of its publicly traded stock, which resulted in a corresponding decline in its market capitalization, along with the operating results for the three months ended September 30, 2023, also 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 as of June 30, 2023 or September 30, 2023. 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. The Company then determined that no additional triggering events had occurred during the remainder of 2023 requiring further impairment assessments for its long-lived assets.

For the years ended December 31, 2023 and 2022, amortization expenses related to intangible assets, and included in depreciation and amortization expenses in the Company's consolidated statements of operations, were $10,478 and $12,723, respectively.

For the years ended December 31, 2023 and 2022, the Company capitalized $5,932 and $4,480, respectively, most of which was related to internally developed software, and wrote off $0 and $186, respectively, due to abandonment of certain internally developed software whose net carrying values were not recoverable.

As of December 31, 2023, estimated amortization expenses related to the Company’s intangible assets for 2024 through 2029 and thereafter are as follows:

(In thousands)
Year	*December 31, 2023*
2024	$	9,378
2025		8,364
2026		1,669
2027		828
2028		828
2029 and thereafter		5,742
Total	$	26,809