Goodwill and Intangible Assets

9 Months Ended

Sep. 30, 2022

Goodwill and Intangible Assets

Goodwill and Intangible Assets

9.      Goodwill and Intangible Assets

The Company’s goodwill as of September 30, 2022 and December 31, 2021 was $115,323, which relates to the Company’s CareVention HealthCare segment.

During the first and second quarters of 2022, the Company experienced a sustained decline in the market price of its common stock and determined that an indicator of impairment was present. The Company performed a quantitative goodwill impairment assessment as of June 30, 2022, estimating the fair value of the Company’s reporting unit using a market approach. Based on the analysis performed, the Company determined that the estimated fair value of the Company’s reporting unit exceeded its carrying value, and, as a result, goodwill was not impaired as of June 30, 2022. No indicators of impairment were identified for the three months ended September 30, 2022.

Intangible assets consisted of the following as of September 30, 2022 and December 31, 2021:

	Weighted Average
	Amortization Period			Accumulated		Intangible
	(in years)	Gross Value		Amortization		Assets, net
September 30, 2022
Trade names	2.6	$	1,340	$	(982)	$	358
Client relationships	11.7		51,264		(14,438)		36,826
Non-competition agreements	5.0		1,640		(1,221)		419
Developed technology	6.2		14,720		(12,076)		2,644
Domain name	10.0		59		(31)		28
Total intangible assets		$	69,023	$	(28,748)	$	40,275

	Weighted Average
	Amortization Period			Accumulated		Intangible
	(in years)	Gross Value		Amortization		Assets, net
December 31, 2021
Trade names	2.9	$	1,340	$	(853)	$	487
Client relationships	11.7		51,264		(11,042)		40,222
Non-competition agreements	5.0		1,640		(975)		665
Developed technology	6.2		14,720		(10,768)		3,952
Domain name	10.0		59		(27)		32
Total intangible assets		$	69,023	$	(23,665)	$	45,358

Amortization expense for intangible assets for the three months ended September 30, 2022 and 2021 was $1,694 and $1,907, respectively. Amortization expense for intangible assets for the nine months ended September 30, 2022 and 2021 was $5,083 and $5,738, respectively.

The estimated amortization expense for the remainder of 2022 and each of the next five years and thereafter is as follows:

Years Ending December 31,
2022 (October 1 – December 31)	$	1,669
2023		6,162
2024		4,684
2025		4,466
2026		4,338
2027		4,271
Thereafter		14,685
Total estimated amortization expense	$	40,275