Goodwill and Other Intangible Assets

6 Months Ended

Jun. 30, 2020

Goodwill And Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

4. Goodwill and Other Intangible Assets

The components of goodwill and other intangible assets were as follows:

June 30, 2020 (Unaudited)	Estimated Useful Life	Gross Carrying Amount		Accumulated Amortization		Net
Finite lived intangible assets:
Customer relationships	5 years	$	12,720,000	$	12,720,000	$	—
Trademarks	7 years		6,235,069		6,196,402		38,667
Patents	7 years		230,683		230,683		—
Software	7 years		2,111,631		1,133,873		977,758
Customer lists	5 years		307,153		307,153		—
Total finite lived intangible assets		$	21,604,536	$	20,588,111	$	1,016,425

December 31, 2019	Estimated Useful Life	Gross Carrying Amount		Accumulated Amortization		Net
Finite lived intangible assets:
Customer relationships	5 years	$	12,720,000	$	12,720,000	$	—
Trademarks	7 years		6,235,069		5,751,037		484,032
Patents	7 years		230,683		230,683		—
Software	7 years		2,090,633		984,141		1,106,492
Customer lists	5 years		307,153		307,153		—
Total finite lived intangible assets		$	21,583,538	$	19,993,014	$	1,590,524

June 30, 2020 (Unaudited) and December 31, 2019	Estimated Useful Life	Carrying Amount
Indefinite lived intangible asset:
Goodwill	Indefinite	$	58,208,490

We compute amortization using the straight-line method over the estimated useful lives of the finite lived intangible assets. Amortization expense related to finite lived intangible assets was $297,746 and $293,491 for the three months ended June 30, 2020 and 2019, respectively.  Amortization expense related to finite lived intangible assets was $595,097 and $585,260 for the six months ended June 30, 2020 and 2019, respectively.

We have no indefinite-lived intangible assets other than goodwill. The goodwill is not deductible for tax purposes.  

We performed our annual impairment analysis for goodwill and other intangible assets in the third quarter of 2019 with no impairment recorded.  During the 2019 impairment assessment, our operations unit had a fair value substantially in excess of the carrying value.  In addition to the annual impairment test, we are required to regularly assess whether a triggering event has occurred which would require interim testing.  We considered the current and expected future economic and market conditions surrounding the COVID-19 pandemic and its impact on our operational and financial performance. Currently, we have determined that a triggering event has not occurred that would require an interim impairment test to be performed.