GOODWILL AND INTANGIBLE ASSETS

9 Months Ended

Sep. 30, 2022

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS

6. GOODWILL AND INTANGIBLE ASSETS

Goodwill was $26,514 as of September 30, 2022 and $12,945 as of December 31, 2021. In the third quarter of 2022, the Company recorded cumulative translation adjustment of ($890) related to the Canadian goodwill in the Zoocasa transaction. The Company has a risk of future impairment to the extent that individual reporting unit performance does not meet projections. Additionally, if current assumptions and estimates, including projected revenues and income growth rates, terminal growth rates, competitive and consumer trends, market-based discount rates, and other market factors, are not met, or if valuation factors outside of the Company’s control change unfavorably, the estimated fair value of goodwill could be adversely affected, leading to a potential impairment in the future. For the three and nine months ended September 30, 2022, no events occurred that indicated it was more likely than not that goodwill was impaired. During the third quarter of 2022 the Company received Goodwill in an acquisition. For information regarding the Company’s recent acquisitions, see Note 3 – Acquisitions.

Definite-lived intangible assets were as follows:

	September 30, 2022			December 31, 2021
	Gross	Accumulated	Net Carrying	Gross	Accumulated	Net Carrying
	Amount	Amortization	Amount	Amount	Amortization	Amount
Trade name	$ 3,453	($ 769)	$ 2,684	$ 2,868	($ 554)	$ 2,314
Existing technology	3,827	(2,144)	1,683	1,846	(1,102)	744
Non-competition agreements	458	(125)	333	125	(125)	-
Customer relationships	1,895	(503)	1,392	1,895	(361)	1,534
Licensing agreement	210	(163)	47	210	(110)	100
Intellectual property	2,836	-	2,836	2,836	-	2,836
Total intangible assets	$ 12,679	($ 3,704)	$ 8,975	$ 9,780	($ 2,252)	$ 7,528

Definite-lived intangible assets are amortized using the straight-line method over an asset’s estimated useful life. Amortization expense for definite-lived intangible assets for the three months ended September 30, 2022 and 2021 was $638 and $318, respectively. Amortization expense for definite-lived intangible assets for the nine months ended September 30, 2022 and 2021 was $1,455 and $939, respectively. The Company has no indefinite-lived assets.