Company: EVCM
Filing Date: 2025-03-13
Form Type: 10-K
Source: 0001853145-25-000009
Chunk: 161

Company: EverCommerce Inc.
Filing Date: 2025-03-13
Form: 10-K
Item: Item 8
Chunk 161
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 $0.2 million to leasehold improvements, which is included in impairment expense on our consolidated statements of operations and comprehensive loss (see Note 2. Summary of Significant Accounting Policies).

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   EverCommerce Inc.Notes to Consolidated Financial Statements

Note 8. Capitalized SoftwareCapitalized software consisted of the following as of:December 31,20242023(in thousands)Capitalized software$71,329 $64,137 Less accumulated amortization(27,663)(21,626)Capitalized software, net$43,666 $42,511 Amortization expense was $10.3 million, $8.4 million and $5.7 million for the years ended December 31, 2024, 2023 and 2022, respectively. During the ordinary course of business, the Company may determine that certain capitalized features of its software will no longer be used either internally or to deliver value to its customers. During the years ended December 31, 2024, 2023 and 2022, we recorded a charge of $0.8 million, $0.6 million and $1.2 million, respectively, related to capitalized costs associated with abandoned projects, which were included in general and administrative expense on the consolidated statements of operations and comprehensive loss.During the three months ended December 31, 2023, we recorded an impairment charge of $1.1 million, which is included in impairment expense on our consolidated statements of operations and comprehensive loss (see Note 2. Summary of Significant Accounting Policies).

Note 9. LeasesThe Company leases real estate from unrelated parties under operating lease agreements that have initial terms ranging from one year to 11 years. Some leases include one or more options to renew, generally at our sole discretion, of five additional years each. The components of lease expense are as follows:Year Ended December 31,20242023(in thousands)Operating lease cost$4,209 $6,419 Variable lease cost2,434 2,046 Short-term lease cost448 356 Total lease cost$7,091 $8,821 The Company ceased use of certain leased premises and subleased certain facilities resulting in impairment charges of $0.4 million and $1.2 million for the years ended December 31, 2024 and 2023, respectively, to impair ROU lease assets to their fair value. During the three months ended December 31,