Note 6 - Goodwill and Intangible Assets

9 Months Ended

Sep. 30, 2021

Notes to Financial Statements

Goodwill and Intangible Assets Disclosure [Text Block]

6. Goodwill and intangible assets 

Goodwill

Goodwill represents the difference between the purchase price and the estimated fair value of identifiable assets acquired and liabilities assumed. Goodwill acquired in a business combination is determined to have an indefinite useful life and is not amortized, but instead is tested for impairment at least annually in accordance with ASC 350. The Company has not identified any triggering events which indicate an impairment of goodwill in the nine months ended September 30, 2021.

Intangible assets

Intangible assets, net consisted of the following as of September 30, 2021:

(In thousands, except weighted average useful life)	September 30, 2021
Finite-lived intangible assets:	Gross Carrying Value		Accumulated Amortization			Net Carrying Value		Weighted Average Useful Life (in years)
Customer Relationships	$	17,516	$	(1,177	)	$	16,339		10.8
Tradenames		35,574		(1,672	)		33,902		14.4
Technology - acquired		41,942		(6,300	)		35,642		6.1
Non-compete agreements		1,990		(302	)		1,688		3.3
In-process research and development⁽¹⁾		67,440		-			67,440		N/A
Total intangible assets	$	164,462	$	(9,451	)	$	155,011		10.1

(1) In-process R&D represents the fair value of incomplete research and development that has not yet reached technological feasibility. We will amortize the asset upon technological feasibility.

Intangible assets, net consisted of the following as of December 31, 2020:

	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

Amortization expense for finite-lived intangible assets was $2.5 million and $5.3 million for the three and nine months ended September 30, 2021, respectively, and $706,000 and $2.1 million for the three and nine months ended September 30, 2020, respectively. As of September 30, 2021, the Company expects to record the following amortization expense for finite-lived intangible assets:

(In thousands)
For the Years Ending December 31,	Estimated Amortization Expense
2021 (3 months remaining)	$	2,858
2022		11,403
2023		10,934
2024		10,109
2025		9,730
Thereafter		42,537
Total	$	87,571