Annual report pursuant to Section 13 and 15(d)

Intangible Assets and Goodwill

v3.20.4
Intangible Assets and Goodwill
12 Months Ended
Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets and Goodwill

NOTE 8 - INTANGIBLE ASSETS AND GOODWILL

 

The following table summarizes identifiable intangible assets of the Company as of December 31, 2020 and 2019:

 

December 31, 2020  

Useful

Lives

(In Years)

    Gross Carrying Amount     Accumulated Amortization    

Net

Carrying Amount

 
Amortized:                                
Customer relationships     9-12     $ 19,264     $ (2,732 )   $ 16,532  
Trademark and tradename     3-15       7,553       (1,292 )     6,261  
Patents     7-11       2,117       (1,661 )     456  
Technology     7       10,911       (3,172 )     7,739  
Favorable contract interest     4       388       (331 )     57  
Covenant not to compete     5       208       (142 )     66  
              40,441       (9,330 )     31,111  
                                 
Unamortized:                                
Customer List             104       -       104  
Trademark and tradename             61       -       61  
                                 
              165       -       165  
                                 
Total           $ 40,606     $ (9,330 )   $ 31,276  

 

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  

 

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. The Company tests goodwill and other indefinite lives intangible assets on an annual basis in the fourth quarter and more frequently if the Company believes indicators of impairment exists. As of December 31, 2019, and 2020, 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, 2019 and 2020, as the Company expects to continue to derive future benefits from these intangible assets.

 

At December 31, 2020, the weighted-average amortization period for the intangible assets was 9.2 years. At December 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, 9.6, 9.8, 4.3, 4.0 and 5.0 years, respectively.

 

Amortization expense for the years ended December 31, 2018, 2019 and 2020 was $712, $1,967 and $5,328, respectively. Estimated future amortization expense for each of the five succeeding fiscal years for these intangible assets is as follows:

 

Year ending December 31:      
2021   $ 5,153  
2022     5,080  
2023     5,035  
2024     2,622  
2025     2,495  
Thereafter     10,726  
    $ 31,111  

 

The change in goodwill from January 1, 2019 to December 31, 2020 is as follows:

 

Balance as of January 1, 2019   $ 7,318  
CarrierWeb acquisition     3,108  
Pointer acquisition     78,642  
Balance as of December 31, 2019     89,068  
Measurement period adjustment (a)     (5,724 )
         
Balance as of December 31, 2020     83,344  

 

  a) After considering all information related to the finalization of income taxes the Company reduced certain provisionally recorded deferred tax liabilities due to the new information with a corresponding decrease in the Pointer acquisition goodwill.