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Note 6 - Intangible Assets, Net

12 Months Ended

Dec. 31, 2024

Notes to Financial Statements

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, 2024*				*December 31, 2023*
Gross amount:
Software developed for internal use			3			$	25,478			$	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
							127,868				126,227
Accumulated amortization:
Software developed for internal use							(16,709	)			(12,142	)
Acquired proprietary technology							(15,037	)			(15,132	)
Customer relationships							(35,952	)			(37,249	)
Trade names							(7,711	)			(6,893	)
Domain names							(87	)			(77	)
Databases							(28,807	)			(26,157	)
Non-competition agreements							(1,768	)			(1,768	)
							(106,071	)			(99,418	)
Net intangible assets:
Software developed for internal use							8,769				8,033
Acquired proprietary technology							755				1,840
Customer relationships							734				1,919
Trade names							8,946				9,764
Domain names							108				118
Databases							2,485				5,135
						$	21,797			$	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 "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 14, Variable Interest Entity); and the consolidation of TAPP Influencers Corp. ("TAPP") effective January 9, 2023 (see Note 14, 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 December 31, 2024 and determined that no triggering event had occurred requiring further impairment assessment of its long-lived assets.

For the years ended December 31, 2024 and 2023, amortization expenses related to intangible assets, and included in depreciation and amortization expenses in the Company's consolidated statements of operations, were $9,626 and $10,478, respectively.

For the years ended December 31, 2024 and 2023, the Company capitalized $6,246 and $5,932, respectively, most of which was related to internally developed software, and took an impairment loss of $980 and $0, respectively, due to $597 of software developed for internal use related to an immaterial business unit under the Fluent reporting unit that had met the held for sale criteria as of June 30, 2024 and disposed of as of July 1, 2024, and $383 related to the impairment of All Other customer relationships discussed above. Further, in connection with the True North sale, an additional $652 of developed technology and software developed for internal use was written off.

As of December 31, 2024, estimated amortization expenses related to the Company’s intangible assets for 2024 through 2030 and thereafter are as follows:

(In thousands)
Year		*December 31, 2024*
2025		$	9,310
2026			4,874
2027			1,035
2028			825
2029			825
2030 and thereafter			4,928
Total		$	21,797