Annual report pursuant to Section 13 and 15(d)

Intangible Assets and Goodwill

v3.20.1
Intangible Assets and Goodwill
12 Months Ended
Dec. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets and Goodwill

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