Quarterly report pursuant to Section 13 or 15(d)

Intangible Assets and Goodwill

v3.20.2
Intangible Assets and Goodwill
9 Months Ended
Sep. 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 September 30, 2020:

 

    Useful   Gross           Net  
    Lives   Carrying     Accumulated     Carrying  
September 30, 2020   (In Years)   Amount     Amortization     Amount  
                       
Amortized:                            
Customer relationships   9 - 12   $ 19,264     $ (2,326 )   $ 16,938  
Trademark and tradename   3 - 15     7,553       (1,091 )     6,462  
Patents   7 - 11     2,117       (1,605 )     512  
Technology   7     10,911       (2,537 )     8,374  
Favorable contract interest   4     388       (307 )     81  
Covenant not to compete   5     208       (132 )     76  
          40,441       (7,998 )     32,443  
                             
Unamortized:                            
Customer list         104       -       104  
Trademark and Tradename         61       -       61  
                             
          165       -       165  
                             
Total       $ 40,606     $ (7,998 )   $ 32,608  

 

    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 September 30, 2020, the weighted-average amortization period for the intangible assets was 9.2 years. At September 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, 9.6, 9.8, 4.3, 4.0 and 5.0 years, respectively.

 

Amortization expense for the three- and nine-month periods ended September 30, 2019 was $253 and $726, respectively, and for the three- and nine-month periods ended September 30, 2020 was $1,331 and $3,996, 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)   $ 1,332  
2021     5,153  
2022     4,479  
2023     4,434  
2024     2,021  
2025     1,894  
Thereafter     13,130  
    $ 32,443  

 

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 nine-month period ended September 30, 2020, the Company did not identify any indicators of impairment.