INTANGIBLE ASSETS, NET

3 Months Ended

Mar. 31, 2023

7. INTANGIBLE ASSETS, NET

Intangible assets, net as of March 31, 2023, and December 31, 2022 consisted of the following (in thousands):

	March 31, 2023		December 31, 2022
Tradenames	$	43,764	$	43,373
Customer and referral relationships, net of accumulated amortization of $25,400 and $23,736, respectively (weighted average amortization period 12.7 years)		63,160		63,238
Non-compete agreements, net of accumulated amortization of $7,152 and $6,999 respectively (weighted average amortization period 5.0 years)		2,067		2,144
	$	108,991	$	108,755

Tradenames, customer and referral relationships and non-compete agreements are related to the businesses acquired. The value assigned to tradenames has an indefinite life and is tested at least annually for impairment using the relief from royalty method in conjunction with the Company’s annual goodwill impairment test. The value assigned to customer and referral relationships is being amortized over their respective estimated useful lives which range from 7 to 16 years. Non-compete agreements are amortized over the respective term of the agreements which range from 5 to 6 years.

The following table details the amount of amortization expense recorded for intangible assets for the three and three months ended March 31, 2023, and 2022 (in thousands):

	Three Months Ended		Three Months Ended
	March 31, 2023		March 31, 2022
Customer and referral relationships	$	1,664	$	2,050
Non-compete agreements		153		147
	$	1,817	$	2,197

Based on the balance of referral relationships and non-compete agreements as of March 31, 2023, the expected amount to be amortized in 2023 and thereafter by year is as follows (in thousands):

Customer and Referral Relationships			Non-Compete Agreements
Years	Annual Amount		Years	Annual Amount
Ending December 31,			Ending December 31,
2023 (excluding the three months ended March 31, 2023)	$	5,096	2023 (excluding the three months ended March 31, 2023)	$	464
2024	$	6,636	2024	$	576
2025	$	6,492	2025	$	505
2026	$	6,023	2026	$	365
2027	$	5,860	2027	$	157
Thereafter	$	33,053