Annual report pursuant to Section 13 and 15(d)

GOODWILL AND INTANGIBLE ASSETS

v3.22.1
GOODWILL AND INTANGIBLE ASSETS
12 Months Ended
Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL AND INTANGIBLE ASSETS

 

6. GOODWILL AND INTANGIBLE ASSETS

 

Goodwill

 

The changes in the carrying amount of goodwill are as follows:

 

    2021     2020  
    As of December 31,  
    2021     2020  
             
Beginning balance   $ 20,060,000     $ 16,337,000  
                 
Additions:                
Acquisition (see Note 3)     -       3,723,000  
Adjustment to provisional goodwill     (296,000 )     -  
                 
Ending balance   $ 19,764,000     $ 20,060,000  

 

In September 2021, the Company finalized the purchase price allocation of SoloFire which the Company acquired in September 2020. As a result, the Company adjusted $296,000 from goodwill to finite-lived intangible assets.

 

Intangible assets

 

The changes in the carrying amount of intangible assets are as follows:

 

    2021     2020  
    As of December 31,  
    2021     2020  
             
Beginning balance   $ 5,153,000     $ 5,366,000  
                 
Additions:                
Acquisition (see Note 3)    

-

      1,122,000  
Adjustment to provisional finite-lived intangible asset     296,000      

-

 
                 
Amortization of intangible assets     (1,496,000 )     (1,335,000 )
                 
Ending balance   $ 3,953,000     $ 5,153,000  

 

Intangible assets consist of the following:

 

    December 31, 2021  
    Gross carrying amount     Accumulated amortization     Net carrying amount     Weighted-average amortization period (years)  
Finite-lived intangible assets                                
Developed technology   $ 6,100,000     $ (2,958,000 )   $ 3,142,000       5  
Customer contracts     1,217,000       (848,000 )     369,000       5  
                                 
Indefinite-lived intangible assets                                             
Domain names     442,000      

-

      442,000          
                                 
    $ 7,759,000     $ (3,806,000 )   $ 3,953,000          

 

 

    December 31, 2020  
    Gross carrying amount     Accumulated amortization     Net carrying amount    

Weighted-

average amortization period (years)

 
Finite-lived intangible assets                                
Developed technology   $ 5,700,000     $ (1,712,000 )   $ 3,988,000       5  
Customer contracts     1,271,000       (592,000 )     679,000       5  
Non-compete     50,000       (6,000 )     44,000       3  
                                 
Indefinite-lived intangible assets                                                
Domain names     442,000       -       442,000          
    $ 7,463,000     $ (2,310,000 )   $ 5,153,000          

 

Estimated amortization expense:

 

Year ending   Amortization  
2022   $ 1,421,000  
2023     1,359,000  
2024     545,000  
2025 and thereafter     186,000  
Total amortization   $ 3,511,000  

 

During the years ended December 31, 2021 and 2020, the Company recorded amortization expense of $1,496,000 and $1,335,000, respectively.