Quarterly report pursuant to Section 13 or 15(d)

GOODWILL AND INTANGIBLE ASSETS-NET

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GOODWILL AND INTANGIBLE ASSETS-NET
3 Months Ended
Mar. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL AND INTANGIBLE ASSETS-NET

3. GOODWILL AND INTANGIBLE ASSETS-NET

 

Goodwill consists of the excess of the purchase price over the fair value of identifiable net assets of businesses acquired. The following is the summary of the changes to the carrying amount of goodwill for the three months ended March 31, 2023 and the year ended December 31, 2022:

 

                 
    Three Months Ended     Year Ended  
    March 31, 2023     December 31, 2022  
    ($ in thousands)  
Beginning gross balance   $ 61,186     $ 61,186  
Acquisitions     -       -  
Ending gross balance   $ 61,186     $ 61,186  

 

Intangible assets include customer contracts and relationships and covenants not-to-compete acquired in connection with acquisitions, as well as trademarks acquired and software costs. Intangible assets – net as of March 31, 2023, and December 31, 2022 consist of the following:

 

                 
    March 31, 2023     December 31, 2022  
    ($ in thousands)  
Contracts and relationships acquired   $ 47,597     $ 47,597  
Capitalized software     22,959       21,547  
Non-compete agreements     1,236       1,236  
Other intangible assets     8,415       8,415  
Total intangible assets     80,207       78,795  
Less: Accumulated amortization     51,672       49,275  
Intangible assets - net   $ 28,535     $ 29,520  

 

The amount for capitalized software represents payroll and development costs incurred for internally developed software. Other intangible assets primarily represent non-compete agreements, purchased intangibles. Amortization expense was approximately $2.5 million for both the three months ended March 31, 2023 and 2022. The weighted-average amortization period is three years.

 

 

As of March 31, 2023, future amortization scheduled to be expensed is as follows:

 

Years ending December 31,     ($ in thousands)  
2023 (nine months)     $ 10,338  
2024       9,498  
2025       6,254  
2026       1,395  
2027       300  
Thereafter       750  
Total     $ 28,535