Quarterly report pursuant to Section 13 or 15(d)

INTANGIBLE ASSETS AND INTERNAL-USE SOFTWARE, NET

v3.23.2
INTANGIBLE ASSETS AND INTERNAL-USE SOFTWARE, NET
 6 Months Ended
Jun. 30, 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:
June 30, 2023 December 31, 2022
Gross
Carrying
Amount		 Accumulated
Amortization		 Net
Carrying
Amount		 Gross
Carrying
Amount		 Accumulated
Amortization		 Net
Carrying
Amount
Amortizable intangible assets:
Licenses $ 27,905  $ (13,109) $ 14,796  $ 21,040  $ (7,962) $ 13,078 
Acquired technology 15,003  (2,331) 12,672  15,003  (830) 14,173 
Customer relationships 12,000  (1,800) 10,200  12,000  (600) 11,400 
Trade names 2,740  (1,353) 1,387  2,740  (1,278) 1,462 
Internal-use software 158,155  (120,953) 37,202  145,798  (109,680) 36,118 
Other 99  —  99  —  —  — 
215,902  (139,546) 76,356  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 $ 216,902  $ (139,546) $ 77,356  $ 197,581  $ (120,350) $ 77,231 
During the three months ended June 30, 2023 and 2022, the Company capitalized internal-use software development costs of $5.9 million and $5.3 million, and during the six months ended June 30, 2023 and 2022, capitalized internal-use software development costs were $12.4 million and $11.9 million, respectively.
During the three months ended June 30, 2023 and 2022, intangible asset and internal-use software amortization was $9.7 million and $7.3 million, respectively, and during the six months ended June 30, 2023 and 2022, intangible asset and internal-use software amortization were $19.2 million and $14.9 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 and six months ended June 30, 2023 and for the three months ended June 30, 2022. During the six months ended June 30, 2022, the Company suspended 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 June 30, 2023, the estimated annual amortization expense is as follows:
Year Ending December 31, Projected Amortization
Expense
Remaining 2023
 $ 19,842 
2024 30,652 
2025 14,002 
2026 6,950 
2027 4,127 
Thereafter 783 
Total $ 76,356