Annual report pursuant to Section 13 and 15(d)

Intangible Assets and Goodwill

v3.20.1
Intangible Assets and Goodwill
12 Months Ended
Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets and Goodwill

NOTE 9 - INTANGIBLE ASSETS AND GOODWILL

 

The following table summarizes identifiable intangible assets of the Company as of December 31, 2019 and 2018:

 

December 31, 2019  

Useful

Lives

(In Years)

   

Gross

Carrying

Amount

   

Accumulated

Amortization

   

Net

Carrying

Amount

 
                         
Amortized:                                
Customer relationships     9 - 12     $ 19,299     $ (1,108 )   $ 18,191  
Trademark and tradename     3 - 15       7,553       (488 )     7,065  
Patents     7 - 11       2,117       (1,436 )     681  
Technology     7       10,911       (634 )     10,277  
Favorable contract interest     4       388       (234 )     154  
Covenant not to compete     5       208       (102 )     106  
              40,476       (4,002 )     36,474  
                                 
Unamortized:                                
Customer list             104       -       104  
Trademark and Tradename             61       -       61  
                                 
              165       -       165  
                                 
Total           $ 40,641     $ (4,002 )   $ 36,639  

 

December 31, 2018  

Useful

Lives

(In Years)

   

Gross

Carrying

Amount

   

Accumulated

Amortization

   

Net

Carrying

Amount

 
                         
Amortized:                                
Customer relationships     10     $ 3,123     $ (442 )   $ 2,681  
Trademark and tradename     10 - 15       1,367       (178 )     1,189  
Patents     11       1,489       (1,218 )     271  
Favorable contract interest     5       388       (137 )     251  
Covenant not to compete     5       208       (60 )     148  
              6,575       (2,035 )     4,540  
                                 
Unamortized:                                
Customer list             104       -       104  
Trademark and Tradename             61       -       61  
                                 
              165       -       165  
                                 
Total           $ 6,740     $ (2,035 )   $ 4,705  

 

The Company tests the goodwill and other indefinite lives intangible assets on an annual basis in the fourth quarter or more frequently if the Company believes indicators of impairment exist. As of December 31, 2018 and 2019, the Company determined that no impairment existed to the goodwill, customer list and trademark and trade name of its acquired intangibles.

 

The Company also determined that the use of indefinite lives for the customer list and remaining trademark and trade name remains applicable at December 31, 2018 and 2019, as the Company expects to continue to derive future benefits from these intangible assets.

 

At December 31, 2019, the weighted-average amortization period for the intangible assets was 9.0 years. At December 31, 2019, the weighted-average amortization periods for customer relationships, trademarks and trade names, patents, favorable contract interests and covenant not to compete were 11.9, 4.5, 7.5, 4.0 and 5.0 years, respectively.

 

Amortization expense for the years ended December 31, 2017, 2018 and 2019 was $375, $712 and $1,967, respectively. Estimated future amortization expense for each of the five succeeding fiscal years for these intangible assets is as follows:

 

Year ending December 31:      
       
2020   $ 5,329  
2021     5,153  
2022     4,479  
2023     4,434  
2024     4,431  
Thereafter     12,648  
    $ 36,474  

 

The change in goodwill from January 1, 2019 to December 31, 2019 is as follows:

 

Balance of as January 1, 2019   $ 7,318  
Pointer acquisition     78,642  
CarrierWeb acquisitions     3,108  
Balance as of December 31, 2019   $ 89,068