Note 6 - Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2020

Notes to Financial Statements

Goodwill and Intangible Assets Disclosure [Text Block]

6. Goodwill and Intangible Assets

Goodwill

The following table represents the changes in the carrying value of goodwill for the year ended December 31, 2020:

(In thousands)	Goodwill
Balance as of December 31, 2018	$	-
Goodwill related to Astero acquisition		9,515
Goodwill related to SAVSU acquisition		21,037
Goodwill related to CBS acquisition		3,085
Balance as of December 31, 2019		33,637
Correction of an error related to CBS goodwill		(131	)
Goodwill related to SciSafe acquisition		24,943
Balance as of December 31, 2020	$	58,449

We adjusted goodwill from the CBS Acquisition related to an immaterial error of $131,000 in payables that were paid during closing and incorrectly recorded as liabilities in our purchase price accounting as of  December 31, 2019. We reduced our goodwill and accounts payable by $131,000.

Intangible Assets

Intangible assets, net consisted of the following at December 31, 2020 and 2019:

(In thousands, except weighted average useful life)	December 31, 2020
Finite-lived intangible assets:	Gross Carrying Value		Accumulated Amortization			Net Carrying Value		Weighted Average Useful Life (in years)
Customer Relationships	$	8,220	$	(330	)	$	7,890		12.8
Tradenames		6,610		(508	)		6,102		14.0
Technology - acquired		19,670		(3,232	)		16,438		7.1
Non-compete agreements		660		(41	)		619		3.8
Total intangible assets	$	35,160	$	(4,111	)	$	31,049		9.7

	December 31, 2019
	Gross Carrying Value		Accumulated Amortization			Net Carrying Value		Weighted Average Useful Life (in years)
Customer Relationships	$	800	$	(51	)	$	749		5.6
Tradenames		2,590		(123	)		2,467		8.1
Technology - acquired		19,020		(904	)		18,116		8.4
In-process R&D⁽¹⁾		650		-			650		9.0
Total intangible assets	$	23,060	$	(1,078	)	$	21,982		8.3

(1) In-process R&D represents the fair value of incomplete research and development that had not yet reached technological feasibility as of December 31, 2019. In the second quarter of 2020, the asset reached technological feasibility and was placed in service.

Amortization expense for finite-lived intangible assets was $3.0 million and $1.1 million for the year ended December 31, 2020 and 2019, respectively. In-process research and development was put into service in the second quarter of 2020. As of December 31, 2020, the Company expects to record the following amortization expense:

(In thousands)
For the Years Ended December 31,	Estimated Amortization Expense
2021	$	3,731
2022		3,731
2023		3,701
2024		3,635
2025		3,463
Thereafter		12,788
Total	$	31,049