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Note 3 - Intangible Assets, Net | 9 Months Ended
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Sep. 30, 2024
Notes to Financial Statements |
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, 2024 |  |  | December 31, 2023 |
Gross amount: |  |  |  |  |  |  |  |  |  |  |  |
Software developed for internal use |  |  | 3 |  |  | $ | 23,997 |  |  |  | 20,175 |
Acquired proprietary technology |  |  | 3-5 |  |  |  | 15,792 |  |  |  | 16,972 |
Customer relationships |  |  | 5-10 |  |  |  | 36,686 |  |  |  | 39,168 |
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 |
Total gross amount |  |  |  |  |  |  | 126,387 |  |  |  | 126,227 |
Accumulated amortization: |  |  |  |  |  |  |  |  |  |  |  |
Software developed for internal use |  |  |  |  |  |  | (15,474 | ) |  |  | (12,142 | )
Acquired proprietary technology |  |  |  |  |  |  | (14,943 | ) |  |  | (15,132 | )
Customer relationships |  |  |  |  |  |  | (35,800 | ) |  |  | (37,249 | )
Trade names |  |  |  |  |  |  | (7,507 | ) |  |  | (6,893 | )
Domain names |  |  |  |  |  |  | (85 | ) |  |  | (77 | )
Databases |  |  |  |  |  |  | (28,144 | ) |  |  | (26,157 | )
Non-competition agreements |  |  |  |  |  |  | (1,768 | ) |  |  | (1,768 | )
Total accumulated amortization |  |  |  |  |  |  | (103,721 | ) |  |  | (99,418 | )
Net intangible assets: |  |  |  |  |  |  |  |  |  |  |  |
Software developed for internal use |  |  |  |  |  |  | 8,523 |  |  |  | 8,033 |
Acquired proprietary technology |  |  |  |  |  |  | 849 |  |  |  | 1,840 |
Customer relationships |  |  |  |  |  |  | 886 |  |  |  | 1,919 |
Trade names |  |  |  |  |  |  | 9,150 |  |  |  | 9,764 |
Domain names |  |  |  |  |  |  | 110 |  |  |  | 118 |
Databases |  |  |  |  |  |  | 3,148 |  |  |  | 5,135 |
Total intangible assets, net |  |  |  |  |  | $ | 22,666 |  |  | $ | 26,809 |
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 acquisition of Q Interactive, LLC, effective June 8, 2016; 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, 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 12, Variable Interest Entity); and the consolidation of TAPP Influencers Corp. ("TAPP") effective January 9, 2023 (see Note 12, Variable Interest Entity). During the second quarter of 2024, the Company determined that the effects of the expected decline in operations due to the impact of certain client relationships constituted a triggering event for the All Other reporting unit. The Company conducted an interim test of recoverability of its long-lived assets, which compared the projected undiscounted cash flows to the carrying value of the asset group. The results of this approach indicated that this long-lived asset was not recoverable and required that an impairment loss related to its customer relationships be calculated. The Company determined that based on the facts and circumstances, the remaining balance was impaired and recorded a non-cash impairment charge of its customer relationship intangible of $383 as of June 30, 2024. The Company completed its quarterly triggering event assessment for the three months ended of September 30, 2024 and determined that no triggering event had occurred requiring further impairment assessment of its long-lived assets. As of June 30, 2024, the Company had recorded a $597 impairment charge on its software developed for internal use which related to an immaterial business unit under the Fluent reporting unit that was disposed of as of September 30, 2024. Amortization expenses of $2,299 and $2,559 for the three months ended September 30, 2024 and 2023, respectively, and $7,277 and $7,810 for the nine months ended September 30, 2024 and 2023, respectively, are included in depreciation and amortization expenses in the consolidated statements of operations. As of September 30, 2024, intangible assets with a carrying amount of $601, 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, 2024, estimated amortization expenses related to the Company's intangible assets for the remainder of 2024 and through 2029 and thereafter are as follows:
Year |  | September 30, 2024 |
Remainder of 2024 |  | $ | 2,536 |
2025 |  |  | 6,982 |
2026 |  |  | 4,329 |
2027 |  |  | 2,248 |
2028 |  |  | 828 |
2029 and thereafter |  |  | 5,743 |
Total |  | $ | 22,666 |

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