Annual report pursuant to Section 13 and 15(d)

Intangible Assets

v3.22.4
Intangible Assets
 12 Months Ended
Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets Intangible Assets
The gross amounts and accumulated amortization of acquired identifiable intangible assets with finite useful lives as of December 31, 2022 and 2021, included in intangible assets, net in the accompanying consolidated balance sheets, are as follows:
December 31,
Useful life
Weighted
Average
Amortization
Period 2022
 2022
Weighted
Average
Amortization
Period 2021
 2021
Customer relationships
 4 years 2.0 years $ 21,703  2.5 years $ 24,516 
Brands
 10 years 7.9 years 84,278  8.9 years 100,315 
Website design and software system
 3 years 2.2 years 1,883 
Trademarks
 5 years 2.3 years 107  3.3 years 114 
Total intangible assets
 106,088  126,828 
Less accumulated amortization
 (29,983) (28,541)
Total intangible assets, net
 $ 76,105  $ 98,287 
Amortization of acquired intangible assets with finite useful lives is included in general and administrative expenses and was $14.2 million, $13.9 million and $6.4 million for the years ended December 31, 2022, 2021 and 2020, respectively. In September 2022, we completed an intra-entity transfer of certain intellectual property rights related to Culture Kings’ brands to one of our subsidiaries in the U.S., aligning the ownership of these rights with our evolving business. The transferred brands had a gross value of $57.4 million and accumulated amortization of $8.7 million at the time of transfer and the gross value was reset to the net book value of $48.7 million upon completion of the transfer.
Future estimated amortization expense for acquired identifiable intangible assets is as follows:
Year ending December 31:
2023 $ 10,812 
2024 10,288 
2025 9,578 
2026 8,923 
2027 8,423 
Thereafter 28,081 
Total amortization expense $ 76,105