Quarterly report pursuant to Section 13 or 15(d)

Intangible Assets and Goodwill

v3.20.2
Intangible Assets and Goodwill
6 Months Ended
Jun. 30, 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 June 30, 2020:

 

    Useful     Gross           Net  
    Lives     Carrying     Accumulated     Carrying  
June 30, 2020   (In Years)     Amount     Amortization     Amount  
                         
Amortized:                                
Customer relationships     9 - 12     $ 19,264     $ (1,920 )   $ 17,344  
Trademark and tradename     3 - 15       7,553       (890 )     6,663  
Patents     7 - 11       2,117       (1,548 )     569  
Technology     7       10,911       (1,903 )     9,008  
Favorable contract interest     4       388       (283 )     105  
Covenant not to compete     5       208       (121 )     87  
              40,441       (6,665 )     33,776  
                                 
Unamortized:                                
Customer list             104       -       104  
Trademark and Tradename             61       -       61  
                                 
              165       -       165  
                                 
Total           $ 40,606     $ (6,665 )   $ 33,941  

 

    Useful     Gross           Net  
    Lives     Carrying     Accumulated     Carrying  
December 31, 2019   (In Years)     Amount     Amortization     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 June 30, 2020, the weighted-average amortization period for the intangible assets was 9.0 years. At June 30, 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- and six-month periods ended June 30, 2019 was $280 and $473, respectively, and for the three- and six-month periods ended June 30, 2020 was $1,333 and $2,665, 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)   $ 2,665  
2021     5,153  
2022     4,479  
2023     4,434  
2024     2,021  
2025     1,894  
Thereafter     13,130  
    $ 33,776  

 

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. For the six-month period ended June 30, 2020, the Company did not identify any indicators of impairment.