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GOODWILL AND INTANGIBLE ASSETS

Goodwill and intangible assets on our balance sheets are the result of our acquisitions of Sigma Systems Corp. ("Sigma") in

October 2008,

Thermonics, Inc. ("Thermonics") in

January 2012

and Ambrell in

May 2017.

All our goodwill and intangible assets are allocated to our Thermal segment.

Goodwill

Goodwill totaled

$13,738

at both

September 30, 2020

and

December 31, 2019

and was comprised of the following:

Sigma	$	1,656
Thermonics		50
Ambrell		12,032
Total	$	13,738

Intangible Assets

Changes in the amount of the carrying value of finite-lived intangible assets for the

nine

months ended

September 30, 2020

are as follows:

Balance - January 1, 2020	$	6,944
Amortization		(927	)
Balance September 30, 2020	$	6,017

The following tables provide further detail about our intangible assets as of

September 30, 2020

and

December 31, 2019:

	September 30, 2020
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Finite-lived intangible assets:
Customer relationships	$	10,480	$	4,633	$	5,847
Technology		600		457		143
Patents		590		563		27
Software		270		270		-
Trade name		140		140		-
Total finite-lived intangible assets		12,080		6,063		6,017
Indefinite-lived intangible assets:
Trademarks		6,710		-		6,710
Total intangible assets	$	18,790	$	6,063	$	12,727

	December 31, 2019
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Finite-lived intangible assets:
Customer relationships	$	10,480	$	3,805	$	6,675
Technology		600		380		220
Patents		590		541		49
Software		270		270		-
Trade name		140		140		-
Total finite-lived intangible assets		12,080		5,136		6,944
Indefinite-lived intangible assets:
Trademarks		6,710		-		6,710
Total intangible assets	$	18,790	$	5,136	$	13,654

We generally amortize our finite-lived intangible assets over their estimated useful lives on a straight-line basis, unless an alternate amortization method can be reliably determined. Any such alternate amortization method would be based on the pattern in which the economic benefits of the intangible asset are expected to be consumed.

None

of our intangible assets have any residual value.

Total amortization expense for our finite-lived intangible assets was

$307

and

$927

for the

three

months and

nine

months ended

September 30, 2020,

respectively, and

$312

and

$944

for the

three

months and

nine

months ended

September 30, 2019,

respectively. The following table sets forth the estimated annual amortization expense for each of the next

five

years:

2020 (remainder)	$	307
2021	$	1,226
2022	$	1,167
2023	$	1,067
2024	$	980

Assessment for Impairment of Goodwill and Long-Lived Assets

As discussed in Note

goodwill is assessed for impairment annually in the

fourth

quarter on a reporting unit basis, or more frequently when events and circumstances occur indicating that the recorded goodwill

may

be impaired. Long-lived assets are assessed for impairment whenever events or changes in business circumstances indicate that the carrying amount of the assets

may

not

be fully recoverable or that the useful lives of these assets are

longer appropriate. As a result of recent market conditions and trends, including the significant ongoing impact of COVID-

on the global economy, we performed a qualitative review of facts and circumstances to determine whether it was more likely than

not

that our goodwill or long-lived assets were impaired and if, as a result, a quantitative impairment assessment was required to be performed as of

September 30, 2020.

Our review included identifying and weighting the significant factors that have impacted our business operations in recent months, both positively and negatively. We considered the nature of these factors, including whether they were ongoing and related to our core business and markets, or non-recurring and reflected macro-economic or global events that are

not

directly related to our core business and markets. As a result of our qualitative review, we determined that is was more likely than

not

that our goodwill and long-lived assets were

not

impaired and, therefore,

quantitative assessment for impairment was required and, thus

not

performed, as of

September 30, 2020.

During the

fourth

quarter of

2020,

we will perform our annual impairment assessment related to our goodwill. As a result of the ongoing uncertainty surrounding the impact of COVID-

on our operations, we

may

perform additional qualitative reviews of goodwill and long-lived assets for impairment at various points in

2021.

There can be

assurance that we will be able to continue to conclude that it is more likely than

not

that our goodwill and long-lived assets are

not

impaired. We

may

determine that we need to perform a quantitative assessment for impairment at some point in the future. Such a quantitative assessment could result in a determination that an impairment exists which would result in recording an impairment charge. The amount of any such impairment charge could be material. Any future impairment charge recorded could materially adversely impact our balance sheet and results of operations and could result in our being unable to borrow funds that would otherwise be available under our revolving credit facility discussed in Note