Goodwill and Intangible Assets

6 Months Ended

Jun. 30, 2021

Goodwill And Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

6. Goodwill and Intangible Assets

Goodwill    

The change in the carrying amount of goodwill during the six months ended June 30, 2021 is as follows:

	Amount
Balance at December 31, 2020	$	3,332
Acquisition of Smarteq		3,259
Foreign currency translation		(69	)
Balance at June 30, 2021	$	6,522

The Company performs an annual impairment test of goodwill as of the end of the first month of the fourth fiscal quarter (October 31), or at an interim date if an event occurs or if circumstances change that would indicate that an impairment loss may have been incurred. In performing the annual impairment test, the Company may consider qualitative factors that would indicate possible impairment. A quantitative fair value assessment is also performed at the reporting unit level. If the fair value exceeds the carrying value, then goodwill is not impaired, and no further testing is performed. If the carrying value exceeds the fair value, the implied fair value of goodwill is then compared against the carrying value of goodwill to determine the amount of impairment.  In addition to the annual impairment test, the Company is required to regularly assess whether a triggering event has occurred which would require interim impairment testing. The Company considered the current and expected future economic and market conditions surrounding the COVID-19 pandemic and its impact on each of the reporting units. Further, the Company assessed the current market capitalization, and financial forecasts.  There were no triggering events during the six months ended June 30, 2021 and June 30, 2020.  The Company will continue to monitor goodwill for impairment going forward.  

Intangible Assets

The Company amortized intangible assets with finite lives on a straight-line basis over the estimated useful lives, which ranged from one to five years.  

The summary of amortization expense in the condensed consolidated statement of operations is as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2021		2020		2021		2020
Cost of revenues	$	15	$	0	$	15	$	111
Operating expenses		55		0		55		33
Total	$	70	$	0	$	70	$	144

The summary of other intangible assets, net is as follows: 

	June 30, 2021						December 31, 2020
			Accumulated		Net Book				Accumulated		Net Book
	Cost		Amortization		Value		Cost		Amortization		Value
Customer contracts and relationships	$	17,651	$	16,906	$	745	$	16,880	$	16,880	$	0
Patents and technology		10,072		9,658		414		9,644		9,644		0
Trademarks and trade names		1,597		993		604		972		972		0
Other intangible assets		117		7		110		0		0		0
Total	$	29,437	$	27,564	$	1,873	$	27,496	$	27,496	$	0

In April 2021, the Company recorded $2.0 million of finite-lived intangible assets for the acquisition of Smarteq, and during the three months ended June 30, 2021, the Company recorded amortization expense of $0.1 million. 

The assigned lives and weighted average amortization periods by intangible asset category are summarized below:

Intangible Assets	Assigned Life	Weighted Average Amortization Period
Customer contracts and relationships	5 years		5.0
Patents and technology	5 years		5.0
Trademarks and trade names	5 years		5.0
Other	1 to 5 years		3.6

Prior to the acquisition of Smarteq, the Company’s intangible assets were fully amortized as of February 2020.  

The future amortization expenses is as follows:

Fiscal Year	Amount
2021	$	202
2022	$	396
2023	$	396
2024	$	381
2025	$	373
Thereafter	$	125
Total	$	1,873