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Intangible Assets and Goodwill
12 Months Ended
Dec. 31, 2019
Goodwill And Intangible Assets Disclosure [Abstract]  
Intangible Assets and Goodwill

Note 10 – Intangible Assets and Goodwill

Intangible assets

The details of identifiable intangible assets as of December 31, 2019 and 2018 are shown below (in thousands except for lives):

 

Amortized Intangible Assets

Original Life

(years)

 

Remaining Life

(years)

 

 

Carrying Value

December 31,

2018

 

 

Amortization

 

 

Carrying Value

December 31,

2019

 

Customer Network (HGP)

12

 

 

3.0

 

 

$

114

 

 

$

(22

)

 

$

92

 

Trade Name (HGP)

14

 

 

5.0

 

 

 

746

 

 

 

(104

)

 

 

642

 

Customer Relationships (NLEX)

7.6

 

 

2.0

 

 

 

330

 

 

 

(109

)

 

 

221

 

Total

 

 

 

 

 

 

 

1,190

 

 

 

(235

)

 

 

955

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unamortized Intangible Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trade Name (NLEX)

N/A

 

N/A

 

 

 

2,437

 

 

 

 

 

 

2,437

 

Total

 

 

 

 

 

 

$

3,627

 

 

$

(235

)

 

$

3,392

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amortized Intangible Assets

Original Life

(years)

 

Remaining Life

(years)

 

 

Carrying Value

December 31,

2017

 

 

Amortization

 

 

Carrying Value

December 31,

2018

 

Customer Network (HGP)

12

 

5.2

 

 

$

136

 

 

$

(22

)

 

$

114

 

Trade Name (HGP)

14

 

7.2

 

 

 

850

 

 

 

(104

)

 

 

746

 

Customer Relationships (NLEX)

7.6

 

3.1

 

 

 

440

 

 

 

(110

)

 

 

330

 

Website (NLEX)

5

 

0

 

 

 

14

 

 

 

(14

)

 

 

 

Total

 

 

 

 

 

 

 

1,440

 

 

 

(250

)

 

 

1,190

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unamortized Intangible Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trade Name (NLEX)

N/A

 

N/A

 

 

 

2,437

 

 

 

 

 

 

2,437

 

Total

 

 

 

 

 

 

$

3,877

 

 

$

(250

)

 

$

3,627

 

 

Amortization expense during each of 2019 and 2018 was $0.2 million and $0.3 million, respectively.  No significant residual value is estimated for these intangible assets.

The Company performed its annual impairment test for the year ended December 31, 2019, in the fourth quarter, and determined that no impairment charges were necessary.  

The estimated amortization expense during the next five fiscal years and thereafter is shown below (in thousands):

 

Year

 

Amount

 

2020

 

$

268

 

2021

 

 

270

 

2022

 

 

159

 

2023

 

 

129

 

2024

 

 

129

 

Total

 

$

955

 

 

Goodwill

As part of its acquisitions, the Company recognized goodwill of $0.6 million related to Equity Partners in 2011, $4.7 million related to HGP in 2012, and $3.5 million related to NLEX in 2014.

Goodwill consisted of the following at December 31, 2019 and 2018 (in thousands):

 

Acquisition

 

December 31, 2019

 

 

December 31, 2018

 

Equity Partners

 

$

 

 

$

573

 

HGP

 

 

2,040

 

 

 

2,040

 

NLEX

 

 

3,545

 

 

 

3,545

 

Total goodwill

 

$

5,585

 

 

$

6,158

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

On September 13, 2019, the Company entered into an Amendment (the “Mann Amendment”) to the Employment Agreement (the “Mann Employment Agreement”) for Kenneth Mann, a named executive officer of the Company and the Senior Managing Director of Equity Partners. Pursuant to the terms of the Mann Amendment, Mr. Mann continued his employment with Equity Partners until December 31, 2019, after which time the Mann Employment Agreement and Mann Amendment terminated and Mr. Mann’s employment with Equity Partners ceased (the “Resignation Time”). As a result of the Mann Amendment, the Company recorded an impairment charge of $0.6 million at December 31, 2019 to reduce the carrying value of goodwill, which resulted from the acquisition of Equity Partners in 2011.

The Company performed its annual impairment test for the year ended December 31, 2019, in the fourth quarter, and determined that no additional impairment charges were necessary.