Intangible Assets

3 Months Ended

Mar. 31, 2020

Intangible Assets Net Excluding Goodwill [Abstract]

Intangible Assets

G. Intangible Assets

Intangible assets are recorded at cost less accumulated amortization which is included in engineering, selling and administrative expenses in the accompanying unaudited condensed consolidated statements of operations. Amortization is computed for financial reporting purposes using the straight-line method over the estimated useful lives of the assets, which range up to 10 years. The intangible assets consist of intellectual property and goodwill. The net carrying value of the amortizable intangible assets was $343,000 and $362,000 as of March 31, 2020 and December 31, 2019, respectively. Goodwill, which is not amortizable, was $40,000 as of both March 31, 2020 and December 31, 2019.

The Company reviews goodwill and the carrying value of long-lived assets at least annually or whenever events and circumstances indicate that the carrying amounts of the assets may not be recoverable. If it is determined that the assets are impaired, the carrying value would be reduced to estimated fair value. As a result of a deterioration in macroeconomic conditions driven by COVID-19 as well as Company-specific events, which combined resulted in declines to our stock price and market capitalization during the first quarter of 2020, the Company determined it was more likely than not that these factors had a significant adverse impact on its reporting units. An interim quantitative goodwill impairment analysis was performed as of March 31, 2020 and the Company determined that the fair values of its goodwill and other long-lived assets were greater than their carrying values. As such, no impairment was necessary for any of its goodwill or other long-lived assets.