Annual report pursuant to Section 13 and 15(d)

Intangible Assets and Goodwill

Intangible Assets and Goodwill

12 Months Ended

Dec. 31, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

NOTE 9. INTANGIBLE ASSETS AND GOODWILL

As of December 31, 2018 and 2017, goodwill was $45,007, and the activity within those years was as follows:

	December 31
	2018		2017

Beginning balance	$	45,007	$	—
Acquisition		—		45,007
Ending balance	$	45,007	$	45,007

The goodwill is assessed for impairment on an annual basis and also on an interim basis when indicators of impairment exist. The Company completed its goodwill assessment on March 1, 2018, and determined the goodwill was not impaired.

The fair value of identifiable intangible assets consisted of the following at December 31, 2018:

	Weighted average remaining useful life (months)		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Definite- Lived Intangibles
Trademarks and tradenames		63.7		2,749		665		2,084
Customer relationships		63.7		22,743		5,497		17,246
Contracts in progress		—		10,632		10,632		—
Non-compete		39.7		548		186		362
Total Intangible Assets			$	36,672	$	16,980	$	19,692

The fair value of identifiable intangible assets consisted of the following at December 31, 2017:

	Weighted average remaining useful life (months)		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Definite- Lived Intangibles
Trademarks and tradenames		75.7		2,749		272		2,477
Customer relationships		75.7		22,743		2,247		20,496
Contracts in progress		9.7		10,632		6,379		4,253
Non-compete		51.7		548		78		470
Total Intangible Assets			$	36,672	$	8,976	$	27,696

Amortization expense for the years ended December 31, 2018 and 2017 was $8,004 and $8,976, respectively. For the year ended December 31, 2018, amortization expense of $3,751 was charged to operating expenses and $4,253 was charged to cost of revenues. For the year ended December 31, 2017, amortization expense of $2,597 was charged to operating expenses and $6,379 was charged to cost of revenues.

Expected future amortization expense consists of the following for each of the following years ended December 31:

2019	$	3,751
2020		3,751
2021		3,751
2022		3,675
2023		3,642
Thereafter		1,122
Total	$	19,692