Intangible Assets And Goodwill

12 Months Ended

Aug. 31, 2024

Intangible Assets And Goodwill [Abstract]

4. INTANGIBLE ASSETS AND GOODWILL

Intangible Assets

Our intangible assets were comprised of the following (in thousands):



		Gross Carrying		Accumulated		Net Carrying
AUGUST 31, 2024		Amount		Amortization		Amount
Finite-lived intangible assets:
Acquired content	$	49,806	$	(45,501)	$	4,305
License rights		33,258		(26,889)		6,369
Customer lists		15,982		(15,589)		393
Acquired technology		7,282		(3,920)		3,362
Trade names		1,883		(1,586)		297
Non-compete agreements and other		930		(890)		40
		109,141		(94,375)		14,766
Indefinite-lived intangible asset:
Covey trade name		23,000		-		23,000
	$	132,141	$	(94,375)	$	37,766

AUGUST 31, 2023
Finite-lived intangible assets:
Acquired content	$	49,802	$	(43,910)	$	5,892
License rights		31,758		(25,461)		6,297
Customer lists		15,982		(15,272)		710
Acquired technology		7,282		(3,200)		4,082
Trade names		1,883		(1,408)		475
Non-compete agreements and other		930		(875)		55
		107,637		(90,126)		17,511
Indefinite-lived intangible asset:
Covey trade name		23,000		-		23,000
	$	130,637	$	(90,126)	$	40,511

During fiscal 2024, we purchased the content rights for The Teacher Believed in Me (TBIM) for $1.5 million in cash. We believe the content in TBIM is compelling and fits well within our Leader in Me offering. While the author retains the copyright to TBIM, the agreement grants us broad rights for the development and use of TBIM content. The content license does not have an expiration date and the purchase price is payable in two installments of $0.8 million. We are

amortizing the content license over a 10-year useful life, which is similar to other licenses, and the final payment is due in January 2025.

Our intangible assets are amortized over the estimated useful life of the asset. The range of remaining estimated useful lives and weighted-average amortization period over which we are amortizing the major categories of finite-lived intangible assets at August 31, 2024 were as follows:


Category of Intangible Asset	Range of Remaining Estimated Useful Lives	Weighted Average Original Amortization Period
Acquired content	2 to 3 years	26 years
License rights	3 to 10 years	26 years
Customer lists	3 years	12 years
Acquired technology	5 years	7 years
Trade names	2 years	5 years
Non-compete agreements and other	3 to 5 years	3 years

Our aggregate amortization expense from finite-lived intangible assets totaled $4.2 million, $4.3 million, and $5.3 million for the fiscal years ended August 31, 2024, 2023, and 2022. Amortization expense from our intangible assets over the next five years is expected to be as follows (in thousands):



YEAR ENDING
AUGUST 31,
2025	$	4,229
2026		4,144
2027		3,296
2028		1,319
2029		1,076

Goodwill

We performed our annual testing of goodwill in accordance with the accounting policies described in Note 1, Nature of Operations and Summary of Significant Accounting Policies. We completed a quantitative assessment of our goodwill as of August 31, 2024 and concluded there were no impairments. We do not have any accumulated impairment charges against the carrying value of our goodwill. At each of August 31, 2024 and 2023, goodwill was allocated to our segments as shown below (in thousands):



Direct offices	$	22,962
International licensees		5,928
Education practice		2,330
	$	31,220