Note 6 - Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Goodwill and Intangible Assets Disclosure [Text Block]

Note 6 – Goodwill and Other Intangible Assets

The changes in the carrying amount of goodwill for the years ended December 31, 2019 and 2018 were as follows:

(in thousands)	Dec. 31, 2017		Goodwill acquired during 2018		Dec. 31, 2018		Goodwill acquired during 2019		Dec. 31, 2019
United States	$	123,635	$	248	$	123,883	$	-	$	123,883
Europe		4,239		-		4,239		-		4,239
Japan		630		-		630		-		630
Total goodwill	$	128,504	$	248	$	128,752	$	-	$	128,752

As described in Note 5 – Business Combinations, the Company acquired RAPID in November 2017. The fair value of the consideration paid exceeded the fair value of the assets acquired and liabilities assumed, which resulted in goodwill in the United States of $99.6 million for the year ended December 31, 2017 and a related working capital adjustment of $0.2 million for the year ended December 31, 2018.

Intangible assets other than goodwill for the years ended December 31, 2019 and 2018 were as follows: 

	Year Ended December 31, 2019							Year Ended December 31, 2018									Weighted Average Useful Life
(in thousands)	Gross		Accumulated Amortization			Net		Gross		Accumulated Amortization			Net		Useful Life (in years)		Remaining (in years)
Intangible Assets with finite lives:
Marketing assets	$	930	$	(527	)	$	403	$	930	$	(434	)	$	496		10.0		4.3
Non-compete agreement		270		(222	)		48		270		(206	)		64		2.0 - 5.0		3.0
Trade secrets		250		(250	)		-		250		(233	)		17		5.0		0.0
Trade names		1,080		(1,080	)		-		1,080		(540	)		540		2.0		0.0
Software technology		13,229		(2,275	)		10,954		12,229		(997	)		11,232		10.0		8.0
Customer relationships		10,070		(4,106	)		5,964		10,070		(2,569	)		7,501		6.0 - 9.0		3.8
Total intangible assets	$	25,829	$	(8,460	)	$	17,369	$	24,829	$	(4,979	)	$	19,850

Amortization expense for intangible assets for the years ended December 31, 2019, 2018 and 2017 was $3.5 million, $3.2 million and $0.5 million, respectively.

The Company acquired a software company in December 2017, which was accounted for as an asset acquisition and resulted in an $8.2 million software technology intangible asset for the year ended December 31, 2017. The acquisition did not meet the definition of a business under ASC 805. The asset acquisition included an additional $5.0 million in contingent consideration to be recognized and paid upon completion of certain milestones over a 24-month period. The completion of each milestone resulted in additional value to the software technology intangible asset. We recognized $1.0 million of the contingent consideration for the year ended December 31, 2019. We recognized $4.0 million of the contingent consideration for the year ended December 31, 2018.

Estimated aggregated amortization expense based on the current carrying value of the amortizable intangible assets is as follows:

(in thousands)	Estimated Amortization Expense
2020	$	3,016
2021		3,016
2022		3,016
2023		2,813
2024		1,400
Thereafter		4,108
Total estimated amortization expense	$	17,369