Intangible Assets and Goodwill

3 Months Ended

Jun. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

INTANGIBLE ASSETS AND GOODWILL

NOTE 7: INTANGIBLE ASSETS AND GOODWILL  

Intangible assets consisted of the following as of June 30, 2020 and March 31, 2020:

	June 30, 2020			March 31, 2020
Patents	$	1,013		$	1,013
Customer relationships		2,100			2,100
Non-compete agreements		250			250
Outsourced vendor relationships		340			340
Non-compete agreements		1,017			1,017
Total intangible assets		4,720			4,720
Accumulated amortization and impairment		(2,441	)		(2,370	)
Intangible assets, net	$	2,279		$	2,350

All intangible assets prior to the acquisition of Banner Midstream were fully impaired as of March 31, 2019. Those intangible assets related to the outsourced vendor relationships and non-compete agreements were recorded as part of the acquisition of 440labs. Goodwill of $3,223 was recorded in the Trend Holdings acquisition, and $7,002 was recorded in the Banner Midstream acquisition.

In the acquisition of Banner Midstream, the Company acquired the customer relationships and non-compete agreements valued at $2,350. The estimated useful lives of the customer relationships is ten years based on the estimated cash flows from those customer contracts, and the estimated useful lives of the non-compete agreement is five years amortized over a straight-line method.

Amortization expense for the three months ended June 30, 2020 and 2019 was $71 and $0, respectively.

The following is the future amortization of the intangibles as of June 30:

2021	$	301
2022		326
2023		259
2024		265
2025		251
Thereafter		877
	$	2,279

In addition to the statutory based intangible assets noted above, the Company incurred $10,225 in the purchase of Trend and Banner Midstream as follows:

Acquisition – Trend Discovery	$	3,223
Acquisition – Banner Midstream		7,002
Goodwill – June 30, 2020 and March 31, 2020	$	10,225

The Company assessed the criteria for impairment, and there were no indicators of impairment present as of June 30, 2020, and therefore no impairment is necessary.