Note 5 - Intangible Assets and Goodwill

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Intangible Assets Disclosure [Text Block]

NOTE

5

– INTANGIBLE ASSETS AND GOODWILL

Intangible assets consisted of the following at:

	December 31, 2019			December 31, 2018
Trademarks	$	6,880		$	8,915
Indefinite-lived intangible assets		1,400			4,346
Customer relationships		8,663			19,110
Other		753			753
		17,696			33,124
Accumulated amortization		(13,333	)		(11,816	)
	$	4,363		$	21,308

Trademarks are amortized over periods ranging from

3

to

30

years, customer relationships are amortized over periods ranging from

15

to

16

years, and other intangible assets are amortized over

3

years. Amortization expense was

$1,517

and

$1,755

for

2019

and

2018,

respectively.

During the

fourth

quarter of fiscal

2019,

we completed our annual impairment test of goodwill and intangible assets and recognized impairment of

$24,407.

  We recognized impairment charges of

$8,979

for goodwill related to Organic Holdings and an aggregate impairment loss of intangible assets of

$15,428.

 During the

fourth

quarter of fiscal

2019,

management updated the fiscal

2019

budget and financial projections beyond fiscal

2019.

 Due to a decline in sales, we determined that the carrying value of our Twinlab and Metabolife trademarks exceeded their fair values and we recognized an impairment of the remaining carrying value those trademarks. We also determined that a corresponding decline in sales also created an impairment in both Reserveage and Rebody tradenames, as well as the remaining amount of Organic Holdings goodwill. We recognized

no

impairment of goodwill and intangible assets during the year ended

December 31, 2018.

The fair value of these assets was determined using level

3

inputs in an income approach using the estimated discounted cash flow valuation methodology. In the

second

step of the impairment test, we performed a hypothetical acquisition and purchase price allocation and measured the implied fair value of each asset to its carrying value. The impairment was calculated by deducting the present value of the expected cash flows from the carrying value. The

second

step of the goodwill impairment test resulted in a

2019

impairment charge of

$8,979

for goodwill related to Organic Holdings and in an aggregate impairment loss of intangible assets of

$15,428

in

2019.

  The impairment charges were recorded in operating expenses in the consolidated statement of operations. 

Estimated aggregate amortization expense for the intangible assets for each of the

five

 years subsequent to

2019

is as follows:

Years Ending December 31,
2020	$	1,111
2021		377
2022		377
2023		377
2024		377
Thereafter		344
	$	2,963