Goodwill and Acquired Intangible Assets

9 Months Ended

Sep. 30, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Acquired Intangible Assets

Note 4 – Goodwill and Acquired Intangible Assets

Goodwill

Changes in goodwill for the nine months ended September 30, 2021 are as follows (in thousands):

	September 30, 2021
Goodwill, beginning of period	$	901
Acquisition of Nebula		484
Goodwill, end of period	$	1,385

ProPhase Labs, Inc. and Subsidiaries

Notes to Condensed Consolidated Financial Statements

(unaudited)

Intangible Assets, Net

Intangible assets as of September 30, 2021 and December 31, 2020 consisted of the following (in thousands):

	September 30,			December 31,			Estimated Useful
	2021			2020			Life (in years)
Trade names	$	5,550		$	-			15
Proprietary intellectual property		4,260			-			5
Customer relationships		1,180			-			1
CLIA license		1,307			1,307			3
		12,297			1,307
Less: accumulated amortization		(735	)		(73	)
Total intangible assets, net	$	11,562		$	1,234

Amortization expense for acquired intangible assets was $445,000 and $662,000 during the three and nine months ended September 30, 2021, respectively. The estimated future amortization expense of acquired intangible assets as of September 30, 2021 is as follows (in thousands):

Three months ended December 31, 2021	$	709
Year ended December 31, 2022		2,378
Year ended December 31, 2023		1,585
Year ended December 31, 2024		1,222
Year ended December 31, 2025		1,222
Thereafter		4,446
	$	11,562