3. GOODWILL AND INTANGIBLE ASSETS-NET

The Company tests goodwill for impairment at the reporting unit level annually or more frequently if a change in circumstances or the occurrence of events indicates that potential impairment exists. During the three months ended September 30, 2023, the Company experienced a decline in its market capitalization as a result of a sustained decrease in the Company’s stock price. The Company considered the sustained decrease to represent a triggering event requiring management to perform a goodwill impairment test as of August 31, 2023.

Based on the results of the goodwill impairment test as of August 31, 2023 and updated to September 30, 2023 for purposes of the fiscal quarter, it was concluded that goodwill was not impaired. The conclusion was based upon the value determined using the discounted cash flow method as supported by the guideline company transactions method and the guideline public company method.

The following is the summary of the carrying amount of goodwill for the nine months ended September 30, 2023 and the year ended December 31, 2022:

  SCHEDULE OF INTANGIBLE ASSETS AND GOODWILL

Intangible assets – net as of September 30, 2023 and December 31, 2022 consist of the following:

  SCHEDULE OF FINITE-LIVED INTANGIBLE ASSETS

Capitalized software represents payroll and development costs incurred for internally developed software. Other intangible assets primarily represent purchased intangibles. Amortization expense was approximately $8.8 million and $7.3 million for the nine months ended September 30, 2023 and 2022. The weighted-average amortization period is three years.

As of September 30, 2023, future amortization is scheduled to be expensed as follows:

SCHEDULE OF FINITE-LIVED INTANGIBLE ASSETS, FUTURE AMORTIZATION EXPENSE