4. GOODWILL AND INTANGIBLE ASSETS

Goodwill

In December 2022, after performing the quantitative impairment test in accordance with ASC 350-20-35-3C, the Company determined that goodwill was impaired by $10,183. As a result of the impairment losses recognized, the carrying amount of the Company’s goodwill was reduced to $9,581 as of December 31, 2022.

The Company did not record any impairment charges during the three months ended March 31, 2023.

Intangible assets

Intangible assets, net consisted of the following:

SCHEDULE OF INTANGIBLE ASSETS 

Amortizable finite-lived intangible assets are being amortized over a period of 3 to 5 years. During the three months ended March 31, 2023 and 2022, the Company recorded amortization expense of $71 and $366, respectively.

In December 2022, the Company recorded an impairment loss of $440 on its indefinite-lived intangible assets that had been recognized as part of the Sound Concepts acquisition in 2019. The Company also recorded an impairment loss of $2 that had been recognized as part of the Solofire acquisition in 2020. As a result of the impairment losses recognized, the carrying amount of the Company’s indefinite-lived intangible assets were reduced to $0 as of December 31, 2022.

The expected future amortization expense for amortizable finite-lived intangible assets as of March 31, 2023 is as follows:

 SCHEDULE OF AMORTIZATION EXPENSE FINITE LIVED INTANGIBLE ASSETS