GOODWILL AND OTHER INTANGIBLE ASSETS, NET

For the identified reporting units, a Step

impairment test was performed as of

December 31, 2020

using an income approach based on management's determination of the prospective financial information, with consideration given to the existing uncertainty in the global economy and aerospace and defense industry, particularly the commercial sector. The results of this test indicated the fair value exceeded carrying value for all reporting units tested. As a result of the impairment testing performed as of

December 31, 2020,

indefinite-lived intangible assets or goodwill was determined to be impaired. Management updated their assessment during the

first

quarter of fiscal

2021

and validated the assumptions used in the analyses performed as of

December 31, 2020

and determined that the resulting conclusions remained appropriate as of

March 31, 2021.

Intangible assets relate to the purchase of businesses. Goodwill represents the excess of cost over the fair value of identifiable assets acquired. Goodwill is

not

amortized but is reviewed on an annual basis for impairment. Amortization of intangibles is being amortized on a straight-line basis over period ranging from

one

year to

years. Intangible assets are as follows:

	March 31, 2021		December 31, 2020
Customer list intangibles	$	8,741,000	$	7,700,000
Non-compete agreements		200,000		200,000
Trademarks		3,092,000		1,930,000
Total intangible assets		12,033,000		9,830,000
Less: accumulated amortization		2,477,615		2,271,691
Intangible assets, net	$	9,555,385	$	7,558,309

Amortization of intangibles assets was:

$205,924

and

$179,340

for the

three

months ended

March 31, 2021

and

2020,

respectively.