Quarterly report pursuant to Section 13 or 15(d)

INTANGIBLE ASSETS AND INTERNAL-USE SOFTWARE, NET

v3.23.1
INTANGIBLE ASSETS AND INTERNAL-USE SOFTWARE, NET
 3 Months Ended
Mar. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
INTANGIBLE ASSETS AND INTERNAL-USE SOFTWARE, NET INTANGIBLE ASSETS AND INTERNAL-USE SOFTWARE, NET
Intangible Assets
The following table provides the gross carrying value and accumulated amortization for each major class of intangible asset other than goodwill:
March 31, 2023 December 31, 2022
Gross
Carrying
Amount		 Accumulated
Amortization		 Net
Carrying
Amount		 Gross
Carrying
Amount		 Accumulated
Amortization		 Net
Carrying
Amount
Amortizable intangible assets:
Licenses $ 25,656  $ (10,434) $ 15,222  $ 21,040  $ (7,962) $ 13,078 
Acquired technology 15,003  (1,580) 13,423  15,003  (830) 14,173 
Customer relationships 12,000  (1,200) 10,800  12,000  (600) 11,400 
Trade names 2,740  (1,315) 1,425  2,740  (1,278) 1,462 
Internal-use software 152,291  (115,343) 36,948  145,798  (109,680) 36,118 
207,690  (129,872) 77,818  196,581  (120,350) 76,231 
Nonamortizable intangible assets:
Marketing Agreement with a related party 1,000  —  1,000  1,000  —  1,000 
Total intangible assets $ 208,690  $ (129,872) $ 78,818  $ 197,581  $ (120,350) $ 77,231 
During the three months ended March 31, 2023 and 2022, the Company capitalized internal-use software development costs of $6.5 million and $6.6 million.
During the three months ended March 31, 2023 and 2022, intangible asset and internal-use software amortization was $9.5 million and $7.6 million, respectively. The aggregate amortization expense for amortizable intangible assets and internal-use software is reflected in “Depreciation and amortization” in the Consolidated Statements of Operations.
There were no impairment charges for intangible assets or internal-use software for the three months ended March 31, 2023. During the three months ended March 31, 2022, the Company adopted a plan to suspend the further development of Kingdom Boss, resulting in a change in the useful life of the assets associated with Kingdom Boss. The Company recorded an $8.4 million non-cash impairment charge during the first quarter of 2022 within "Restructuring and related" in the Condensed Consolidated Statement of Operations.
As of March 31, 2023, the estimated annual amortization expense is as follows:
Year Ending December 31, Projected Amortization
Expense
Remaining 2023
 $ 27,263 
2024 27,514 
2025 12,041 
2026 6,167 
2027 4,120 
Thereafter 713 
Total $ 77,818