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Goodwill and Intangible Assets
 3 Months Ended
Mar. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets

NOTE 7 – Goodwill and Intangible Assets

 

The Company reviews goodwill for impairment on a reporting unit basis on December 31 of each year and whenever events or changes in circumstances indicate the carrying value of goodwill may not be recoverable. The Company noted that the carrying amount of Goodwill for the period ended March 31, 2023 (Successor) was $44,122 thousand, which was entirely due to the business combination noted in Note 3. The Company did not have any goodwill for the period ended March 14, 2023 (Predecessor) and the year ended December 31, 2022 (Predecessor).

 

Goodwill consisted of the following (in thousands):

 

     
Acquisition  Amount 
Balance as of March 14, 2023  $- 
Acquisition of Legacy CXApp   44,122 
Balance as of March 31, 2023  $44,122 

 

Intangible assets consisted of the following (in thousands):

 

  March 31, 2023 (Successor)       December 31, 2022 (Predecessor) 
    Weighted Average Remaining
Useful Life
(Years)		    Gross Amount    Accumulated Amortization    Net Carrying Amount     Gross
Amount		    Accumulated Amortization   Net Carrying
Amount		 
Trade Name/Trademarks   7 years    $3,294    $(20) $ 3,274     $ 2,183    $(725)  $ 1,458 
Customer Relationships   5 years    5,604    (47) 5,557     6,401     (1,765)    4,636 
Developed Technology   10 years    9,268    (38) 9,230     15,179     (3,398)    11,781 
Non-compete Agreements       -    -  -    3,150   (1,736)     1,414
Patents and Intellectual Property   10 years    2,703    (11) 2,692     -     -     - 
Totals        $20,869    $(116) $ 20,753     $ 26,913    $(7,624)  $ 19,289 

 

Aggregate Amortization Expense:

 

Aggregate amortization expense for the period ended March 31, 2023 (Successor), period ended March 14, 2023 (Predecessor) and three months ended March 31, 2022 (Predecessor) was $116 thousand, $806 thousand and $975 thousand, respectively. 

 

Future amortization expense on intangible assets is anticipated to be as follows (in thousands):

 

     
For the Years Ending December 31,  Amount 
2023  $2,091 
2024   2,788 
2025   2,788 
2026   2,788 
2027   2,788 
2028 and thereafter   7,510 
Total  $20,753