Goodwill and Intangible Assets

6 Months Ended

Jun. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Note 4 - Goodwill and Intangible Assets

Goodwill

Goodwill represents the amount an acquisition’s purchase price exceeds the fair value of the assets acquired, including identifiable intangible assets, and liabilities assumed. Goodwill is not amortized; however it is required to be tested for impairment annually at the reporting unit level. Testing for impairment is also required on an interim basis if events or circumstances indicate it is more likely than not that an impairment loss has been incurred.

The Company performed its annual impairment test as of October 1, 2021, utilizing a qualitative assessment to determine if it was more likely than not that the fair value of each of its reporting units was less than their respective carrying values, and concluded that no impairment existed. Subsequent to completing the annual test and through June 30, 2022, there were no events or circumstances that required an interim impairment test. Additionally, as of June 30, 2022, the Company had no accumulated goodwill impairment losses.

All of the Company's goodwill is attributable to its Software and Payments segment. A summary of goodwill and the changes in its carrying amount are shown in the following table (in thousands):

	Consolidated Goodwill
Balance at December 31, 2021	$	88,148
Addition from acquisition (1)	40,838
Foreign translation adjustments	(6,866)
Balance at June 30, 2022	$	122,120

(1)The entire increase is related to the acquisition of Order2Cash (refer to Note 3 - Business Combination & Acquisitions).

Finite-Lived Intangible Assets

The gross carrying values, accumulated amortization, and net carrying values (reduced for fully amortized intangibles) of finite-lived intangible assets as of June 30, 2022 and December 31, 2021, are as follows (in thousands):

	June 30, 2022
	Gross Carrying Value		Accumulated Amortization		Net Carrying Value
Customer relationships	$	43,366	$	(4,834)	$	38,532
Non-compete agreements	1,430		(1,060)		370
Trademarks and trade names	2,258		(269)		1,989
Technology	6,681		(1,442)		5,239
Total	$	53,735	$	(7,605)	$	46,130

	December 31, 2021
	Gross Carrying Value		Accumulated Amortization		Net Carrying Value
Customer relationships	$	23,621	$	(3,524)	$	20,097
Non-compete agreements	1,430		(917)		513
Trademarks and trade names	1,066		(111)		955
Technology	3,692		(918)		2,774
Total	$	29,809	$	(5,470)	$	24,339

Amortization expense was $1.3 million and $0.6 million for the three months ended June 30, 2022 and 2021, respectively, and $2.2 million and $1.1 million for the six months ended June 30, 2022 and 2021, respectively.

Estimated amortization expense for each of the next five years and thereafter is as follows (in thousands):

2022 (remainder)	$	2,511
2023	3,481
2024	3,237
2025	3,044
2026	3,006
Thereafter	30,851
Total	$	46,130