| GOODWILL AND INTANGIBLE ASSETS |
| 6. |
GOODWILL
AND INTANGIBLE ASSETS |
Goodwill
The
changes in the carrying amount of goodwill are as follows:
SCHEDULE
OF GOODWILL AND INTANGIBLE ASSETS
| |
|
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:
SCHEDULE
OF INTANGIBLE ASSETS
| |
|
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:
SCHEDULE
OF 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.
|