GOODWILL AND INTANGIBLE ASSETS

3 Months Ended

Mar. 31, 2023

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS

5. GOODWILL AND INTANGIBLE ASSETS

Goodwill was $27,261 as of March 31, 2023 and $27,212 as of December 31, 2022. In the first quarter of 2023, the Company recorded cumulative translation adjustment of $73 related to Canadian goodwill. 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 months ended March 31, 2023, no events occurred that indicated it was more likely than not that goodwill was impaired.

Definite-lived intangible assets were as follows:

	March 31, 2023			December 31, 2022
	Gross	Accumulated	Net Carrying	Gross	Accumulated	Net Carrying
	Amount	Amortization	Amount	Amount	Amortization	Amount
Trade name	$ 3,461	($ 913)	$ 2,548	$ 3,459	($ 841)	$ 2,618
Existing technology	7,368	(2,833)	4,535	3,995	(2,458)	1,537
Non-competition agreements	462	(125)	337	461	(125)	336
Customer relationships	1,895	(598)	1,297	1,895	(551)	1,344
Licensing agreement	210	(198)	12	210	(181)	29
Intellectual property	2,836	-	2,836	2,836	-	2,836
Total intangible assets	$ 16,232	($ 4,667)	$ 11,565	$ 12,856	($ 4,156)	$ 8,700

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 March 31, 2023 and 2022 was $512 and $342, respectively. The Company has no indefinite-lived assets.