Goodwill and Intangible Assets

12 Months Ended

Sep. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND INTANGIBLE ASSETS

6. GOODWILL AND INTANGIBLE ASSETS

Goodwill

The Company had goodwill balances of $120.2 million and $63.1 million at September 30, 2022 and 2021, respectively, representing the excess of costs over fair value of net assets of businesses acquired. Goodwill acquired in a business combination and determined to have an indefinite useful life is not amortized, but instead is tested for impairment at least annually in accordance with ASC Topic 350. The following table summarizes changes in the balance of goodwill during the twelve months ended September 30, 2022 and 2021 (amounts in thousands):

Balance at September 30, 2021	$	63,096
Acquisition of HooYu	$	74,206
Impact of revenue restatement	$	(427)
Foreign currency effect on goodwill	$	(16,342)
Balance at September 30, 2022	$	120,186

Intangible Assets

Intangible assets include the value assigned to purchased completed technology, customer relationships, and trade names. The estimated useful lives for all of these intangible assets, range from three to seven years. Intangible assets as of September 30, 2022 and 2021 are summarized as follows (amounts in thousands, except for years):

September 30, 2022:	Weighted Average Amortization Period	Cost		Accumulated Amortization		Net
Completed technologies	6.9 years	$	95,761	$	32,265	$	63,496
Customer relationships	4.7 years	25,168		18,241		$	6,927
Trade names	5.0 years	7,088		2,174		$	4,914
Covenants not to compete	3.0 years	$	600	$	181	$	419
Total intangible assets		$	128,617	$	52,861	$	75,756

September 30, 2021:	Weighted Average Amortization Period	Cost		Accumulated Amortization		Net
Completed technologies	6.6 years	$	34,361	$	13,311	$	21,050
Customer relationships	4.6 years	20,168		12,905		7,263
Trade names	4.7 years	988		567		421
Total intangible assets		$	55,517	$	26,783	$	28,734

Amortization expense related to acquired intangible assets was $13.5 million, $7.5 million, and $6.4 million for twelve months ended September 30, 2022, 2021, and 2020, respectively, and is recorded in amortization and acquisition-related costs in the consolidated statements of operations.

The estimated future amortization expense related to intangible assets for each of the five succeeding fiscal years is expected to be as follows (amounts in thousands):

	Estimated Future Amortization Expense
2023	15,730
2024	13,640
2025	12,446
2026	11,336
2027	10,315
Thereafter	12,289
Total	$	75,756