Quarterly report pursuant to Section 13 or 15(d)

Intangible Assets and Goodwill

v3.20.1
Intangible Assets and Goodwill
3 Months Ended
Mar. 31, 2020
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 March 31, 2020:

 

March 31, 2020 (Unaudited)  

Useful

Lives

(In Years)

   

Gross

Carrying

Amount

   

Accumulated

Amortization

   

Net

Carrying

Amount

 
                         
Amortized:                                
Customer relationships     9 - 12     $ 19,264     $ (1,514 )   $ 17,750  
Trademark and tradename     3 - 15       7,553       (689 )     6,864  
Patents     7 - 11       2,117       (1,492 )     625  
Technology     7       10,911       (1,269 )     9,642  
Favorable contract interest     4       388       (259 )     129  
Covenant not to compete     5       208       (111 )     97  
              40,441       (5,334 )     35,107  
                                 
Unamortized:                                
Customer list             104       -       104  
Trademark and Tradename             61       -       61  
                                 
              165       -       165  
                                 
Total           $ 40,606     $ (5,334 )   $ 35,272  

  

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  

 

At March 31, 2020, the weighted-average amortization period for the intangible assets was 9.0 years. At March 31, 2020, the weighted-average amortization periods for customer relationships, trademarks and trade names, patents, technology, favorable contract interests and covenant not to compete were 11.9, 4.5, 9.8, 7.0, 4.0 and 5.0 years, respectively.

 

Amortization expense for the three month periods ended March 31, 2019 and 2020 was $193 and $1,332, 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 (remaining)     $ 3,997  
2021       5,153  
2022       4,479  
2023       4,434  
2024       2,021  
2025       1,894  
Thereafter       13,129  
      $ 35,107  

 

COVID-19 continues to adversely impact the broader global economy and has caused significant volatility in financial markets. If there is a lack of recovery or further global softening in certain markets, or a sustained decline in the value of the Company’s common stock, the Company may conclude that indicators of impairment exist and would then be required to calculate whether or not an impairment exists for its goodwill, other intangibles, and long-lived assets, the results of which could result in material impairment charges.