Intangible Assets

9 Months Ended

Sep. 30, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

Note 7. Intangible Assets

Patent Portfolio and Patent Rights

The Company’s intangible assets with finite lives consist of its patents and patent rights. For all periods presented, all of the Company’s identifiable intangible assets were subject to amortization. The carrying amounts related to acquired intangible assets as September 30, 2018 are as follows ($ in thousands): 

	Net Carrying Amount			Weighted average amortization period (years)
Patent Portfolios and Patent Rights at December 31, 2017, net	$	3,578			2.67
Amortization expenses		(1,027	)
Impairment loss		(1,051	)
Patent Portfolios and Patent Rights at September 30, 2018, net	$	1,500			1.00

The amortization expenses related to acquired intangible assets for the nine months ended September 30, 2018 and 2017 are as follows ($ in thousands):

	Amortization Expense for the Three Months Ended September 30,				Amortization Expense for the Nine Months Ended September 30,
Date Acquired and Description	2018		2017		2018		2017
7/24/13 - Rockstar patent portfolio	$	18	$	18	$	54	$	53
9/10/13 - North South patent portfolio		5		5		16		16
12/31/13 - Rockstar patent portfolio		323		323		957		958
	$	346	$	346	$	1,027	$	1,027

The Company reviews its patent portfolio for impairment as a single asset group whenever events or changes in circumstances indicate that the carrying value may not be recoverable. During the third quarter of 2018, the Company determined that certain events occurred that were indicators of a potential impairment. In accordance with ASC 360-10, the Company first estimated the future undiscounted cash flows anticipated to be generated by the patent portfolio based on the Company’s current usage and future plans for the patent portfolio over its remaining weighted average useful life. Given the short-term nature of the patents the undiscounted cash flows approximate discounted cash flows. The analysis concluded that the carrying amount of the patent portfolio was not recoverable at September 30, 2018. As a result, the Company performed an analysis to determine if the carrying value of the patent portfolio exceeded its fair value. As a result, the Company determined that the fair value of the patent portfolio at September 30, 2018 was $1.5 million. The Company recorded a $1.1 million impairment charge against its patent portfolio in the third quarter of 2018. The new cost basis of the patent portfolio of $1.5 million will be amortized over its weighted average remaining useful life of 1.00 years.

The future amortization of these intangible assets was based on the adjusted carrying amount. Future amortization of all patents is as follows ($ in thousands):

	Rockstar		North South		Rockstar
	Portfolio		Portfolio		Portfolio
	Acquired		Acquired		Acquired		Total
	24-Jul-13		10-Sep-13		31-Dec-13		Amortization
Nine Months Ended December 31, 2018		42		15		321		378
Year Ended December 31, 2019		129		42		951		1,122
Total	$	171	$	57	$	1,272	$	1,500