Post-effective amendment to a registration statement that is not immediately effective upon filing

GOODWILL AND INTANGIBLE ASSETS

v3.22.2
GOODWILL AND INTANGIBLE ASSETS
3 Months Ended 12 Months Ended
Mar. 31, 2022
Dec. 31, 2021
GOODWILL AND INTANGIBLE ASSETS    
Goodwill And Intangible Assets

7. INTANGIBLE ASSETS

 

Intangible Assets

 

A reconciliation of the beginning and ending balances of intangible assets and accumulated amortization during the three months ended March 31, 2022 and intangible assets, net as of December 31, 2021 are as follows:

 

 

 

Definite Life Intangibles

 

 

Indefinite Life Intangibles

 

 

 

 

 

 

 

 

 

 

 

 

 

Technology/

 

 

Brands &

 

 

 

 

(in thousands)

 

Know How

 

 

Tradenames

 

 

Total

 

Costs

 

 

 

 

 

 

 

 

 

Balance—December 31, 2021

 

$ 3,258

 

 

$ 37,707

 

 

$ 40,965

 

Business acquisition

 

 

-

 

 

 

-

 

 

 

-

 

Agreement termination

 

 

-

 

 

 

-

 

 

 

-

 

Balance—March 31, 2022

 

$ 3,258

 

 

$ 37,707

 

 

$ 40,965

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated Amortization

 

 

 

 

 

 

 

 

 

 

 

 

Balance—December 31, 2021

 

$ (209 )

 

$ -

 

 

$ (209 )

Agreement termination

 

 

-

 

 

 

-

 

 

 

-

 

Amortization

 

 

(82 )

 

 

-

 

 

 

(82 )

Other

 

 

-

 

 

 

-

 

 

 

-

 

Balance—March 31, 2022

 

$ (291 )

 

$ -

 

 

$ (291 )

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Book Value

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2021

 

$ 3,049

 

 

$ 37,707

 

 

$ 40,756

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Book Value

 

 

 

 

 

 

 

 

 

 

 

 

March 31, 2022

 

$ 2,967

 

 

$ 37,707

 

 

$ 40,674

 

 

Intangible assets with finite lives are amortized over their estimated useful lives. Amortization periods of assets with finite lives are based on management’s estimates at the date of acquisition. The Company recorded amortization expense of $82 and $9 for the three months ended March 31, 2022, and 2021, respectively.

 

The Company estimates that amortization expense for our existing other intangible assets will be approximately $325 annually for each of the next ten fiscal years. Actual amortization expense to be reported in future periods could differ from these estimates as a result of new intangible asset acquisitions, changes in useful lives or other relevant factors or changes.

7. GOODWILL AND INTANGIBLE ASSETS

 

Goodwill

 

A reconciliation of the beginning and ending balances of goodwill during the year ended December 31, 2021 is as follows:

 

(in thousands)

 

 

 

Costs

 

 

 

Balance - December 31, 2020

 

$ 357

 

Additions

 

 

-

 

Business Acquisitions

 

 

-

 

Impairment

 

 

(357 )

Balance - December 31, 2021

 

$ -

 

 

The Company evaluates goodwill for impairment annually during the fiscal third quarter and when an event occurs, or circumstances change such that it is reasonably possible that impairment may exist. The Company accounts for goodwill and evaluates its goodwill balances and tests them for impairment in accordance with related accounting standards. As a result of its annual impairment assessment in the third quarter of fiscal 2021, the Company realized a $357 impairment of goodwill related to its investment in the assets of Acme Inc., a manufacturer of vape cartridges and disposable pens, which is recorded in general and administrative expenses in our consolidated financial statements for the year ended December 31, 2021.

 

Other Intangible Assets

 

A reconciliation of the beginning and ending balances of intangible assets and accumulated amortization during the years ended December 31, 2021 and 2020 are as follows:

 

 

 

Definite Life Intangibles

 

 

Indefinite Life Intangibles

 

 

 

 

 

 

Branding

 

 

Technology/

 

 

Brands &

 

 

 

 

(in thousands)

 

Rights

 

 

Know How

 

 

Tradenames

 

 

Total

 

Costs

 

 

 

 

 

 

 

 

 

 

 

 

Balance—December 31, 2020

 

$ 250

 

 

$ 208

 

 

$ 408

 

 

$ 866

 

Business acquisition

 

 

-

 

 

 

3,050

 

 

 

37,299

 

 

 

40,349

 

Agreement termination

 

 

(250 )

 

 

-

 

 

 

-

 

 

 

(250 )

Balance—December 31, 2021

 

$ -

 

 

$ 3,258

 

 

$ 37,707

 

 

$ 40,965

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated Amortization

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance—December 31, 2020

 

$ (93 )

 

$ (37 )

 

$ -

 

 

$ (130 )

Agreement termination

 

 

98

 

 

 

-

 

 

 

-

 

 

 

98

 

Amortization

 

 

(5 )

 

 

(172 )

 

 

-

 

 

 

(177 )

Other

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Balance—December 31, 2021

 

$ -

 

 

$ (209 )

 

$ -

 

 

$ (209 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Book Value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2020

 

$ 157

 

 

$ 171

 

 

$ 408

 

 

$ 736

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Book Value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2021

 

$ -

 

 

$ 3,049

 

 

$ 37,707

 

 

$ 40,756

 

Intangible assets with finite lives are amortized over their estimated useful lives. Amortization periods of assets with finite lives are based on management’s estimates at the date of acquisition. The Company recorded amortization expense of $177, $64 and $71 for the years ended December 31, 2021, 2020 and 2019, respectively.

 

The Company estimates that amortization expense for our existing other intangible assets will be approximately $305 annually for each of the next nine and a half fiscal years. Actual amortization expense to be reported in future periods could differ from these estimates as a result of new intangible asset acquisitions, changes in useful lives or other relevant factors or changes.