Intangible Assets, Net

12 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets, Net

9. Intangible Assets, Net 

Intangible assets, net as of December 31, 2022 and 2021 consisted of the following:

	Useful Life				Accumulated			Impairment
	(in months)		Gross		Amortization			Charge			Net
As of December 31, 2022
Patent		57	$	2,700	$	(2,700	)	$	–		$	–
Customer Relationships		120		7,642		(5,470	)		(1,430	)		742
Tradename		60		1,400		(607	)		–			793
Technology		60		1,574		(682	)		–			892
Other		60-84		370		(210	)		–			160
			$	13,686	$	(9,669	)	$	(1,430	)	$	2,587
As of December 31, 2021
Patent		57	$	2,700	$	(2,700	)	$	–		$	–
Customer Relationships		120		7,642		(5,193	)		(1,519	)		930
Tradename		60		1,400		(327	)		–			1,073
Technology		60		1,574		(367	)		–			1,207
Other		60-84		369		(146	)		–			223
			$	13,685	$	(8,733	)	$	(1,519	)	$	3,433

The customer relationship was mainly contributed by the acquisition of SJ Australia in May 2015 and assets purchased from PDI in February 2021 (see Note 4). The customer relationship with clients of SJ Australia was the key driver of the revenue, which was expected to bring further economic benefit to the Group’s business, the balance of customer relationship for SJ Australia is amortized over the useful life of 10 years.

The customer relationship for SJ US mainly represented the customer contracts in process, the Company could continue the execution of the contracts to generate profit by inputting material and labor cost. As of December 31, 2022, all the contracts in process purchased have either been executed or forfeited, and the cost has been fully amortized during the year ended December 31, 2021.

The tradename and technology were contributed by the acquisition of Phoenix in the year of 2020. As tradename and technology were the key drivers of the revenue for Phoenix, which were expected to bring further economic benefit to the Group’s business, the tradename and technology were separately identified as intangible assets on the acquisition date. The balances are amortized over the useful life of 5 years.

No impairment loss was provided for intangible assets for the years ended December 31, 2022 and 2021. Amortization expense for intangible assets was $936 and $3,931 for the years ended December 31, 2022 and 2021, respectively.

As of December 31, 2022, the estimated future amortization expense related to intangible assets is as follows:

Year ending December 31,		USD
	2023	$	935
	2024		935
	2025		717
	2026		–
	2027 and thereafter		–
		$	2,587