Annual report pursuant to Section 13 and 15(d)

Goodwill and Intangible Assets

v3.22.1
Goodwill and Intangible Assets
12 Months Ended
Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL AND INTANGIBLE ASSETS

NOTE 6 – GOODWILL AND INTANGIBLE ASSETS

Goodwill

Goodwill represents the difference between the purchase price and the estimated fair value of identifiable assets acquired and liabilities assumed. As of December 31, 2021 and 2020, the Company had goodwill of $4,971.

Intangible Assets

A summary of intangible assets consisted of the following:

 

 

Estimated
Useful
Life (in years)

 

Gross
Carrying
Value

 

 

Accumulated
Amortization

 

 

Net Book
Value

 

As of December 31, 2021

 

 

 

 

 

 

 

 

 

 

 

Trademarks

 

10

 

$

1,415

 

 

$

362

 

 

$

1,053

 

Patents

 

20

 

 

12,775

 

 

 

1,328

 

 

 

11,447

 

 

 

 

 

$

14,190

 

 

$

1,690

 

 

$

12,500

 

As of December 31, 2020

 

 

 

 

 

 

 

 

 

 

 

Trademarks

 

10

 

$

1,415

 

 

$

156

 

 

$

1,259

 

Patents

 

20

 

 

12,775

 

 

 

568

 

 

 

12,207

 

 

 

 

 

$

14,190

 

 

$

724

 

 

$

13,466

 

The intangible assets are amortized over the period the Company expects to receive the related economic benefit. Amortization expense related to amortizable intangible assets was $966 and $1,090 for the years ended December 31, 2021 and 2020, respectively, which was included as part of depreciation and amortization in the consolidated statements of operations.

During the first quarter of 2020, the Company identified a triggering event and performed a quantitative impairment test on long-lived assets. The expected present value method, a form of the income approach, was utilized to determine the fair value of long-lived assets. This method is based on expected cash flows using a risk-adjusted discount rate, which reflects the weighted average cost of capital of similarly traded public companies. As a result of the impairment test performed, during the year ended December 31, 2020, the Company recorded an impairment charge of $7,270 to reduce the carrying value of intangible assets to its fair value on the date of impairment. No impairment of intangible assets was recorded for the year ended December 31, 2021.

As of December 31, 2021, the estimated amortization expense for future periods is as follows:

Fiscal Year

 

Estimated
Amortization
Expense

 

2022

 

$

966

 

2023

 

 

966

 

2024

 

 

966

 

2025

 

 

966

 

2026

 

 

966

 

Thereafter

 

 

7,670

 

Total

 

$

12,500