Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

The Company reviews goodwill for impairment on a reporting unit basis on December 31 of each year and whenever events or changes in circumstances indicate the carrying value of goodwill may not be recoverable. The Company’s significant assumptions in these analyses include, but are not limited to, projected revenue, the weighted average cost of capital, the terminal growth rate, derived multiples from comparable market transactions and other market data.

Goodwill impairment expense was approximately $7.6 million for the year ended December 31, 2022, of which $6.4 million pertains to discontinued operations. As of December 31, 2023, the Company's cumulative goodwill impairment charges were approximately $31.0 million of which approximately $19.4 million pertains to discontinued operations and approximately $11.6 million relates to continuing operations of the Indoor Intelligence reporting unit. As of December 31, 2023 and December 31, 2022, the Company's previously recorded goodwill is fully impaired.

Intangible assets at December 31, 2023 and 2022 consisted of the following (in thousands):


	December 31,
	2023								2022
	Gross Amount		Accumulated Amortization		Spin-off		Net Carrying Amount		Gross Amount		Accumulated Amortization		Impairment	Spin-off		Net Carrying Amount		Remaining Weighted Average Useful Life as of December 31, 2023
IP Agreement	$	167	$	(136)	$	—	$	31	$	162	$	(91)	—	$	—	$	71	0.75
Trade Name/Trademarks	2,012		(332)		(1,584)		96		$	3,808	$	(1,414)	(594)	$	(1,675)	$	125	3.00
Webstores & Websites	—		—		—		—		404		(258)		(146)	—		—		0.00
Customer Relationships	6,523		(1,035)		(4,746)		742		9,413		(2,776)		(748)	(4,928)		961		1.80
Developed Technology	15,494		(1,993)		(12,162)		1,339		22,472		(5,385)		(2,921)	(12,477)		1,689		4.34
Non-compete Agreements	1,777		(573)		(1,204)		—		4,270		(2,488)		(220)	(1,414)		148		0.00
Totals	$	25,973	$	(4,069)	$	(19,696)	$	2,208	$	40,529	$	(12,412)	(4,629)	$	(20,494)	$	2,994

The Company reviews intangible and other long-lived assets for impairment on an asset group basis on December 31 of each year and whenever events or changes in circumstances indicate the carrying value of intangibles and other long-lived assets may not be recoverable.

During the years ended December 31, 2023 and 2022, the Company assessed its long-lived asset groups for impairment due to qualitative triggering events that consisted of missing operating projections, a sustained decrease in stock price, and planned divestitures to sell and/or dispose of long-lived assets before the end of their useful lives. Therefore, the Company calculated the fair value of each asset group’s long-lived assets by utilizing fair value methodologies that are most applicable to each specific asset group. These fair value methodologies included an income based approach, a market based approach and a cost based approach. The Company compared the fair value of each asset group’s long-lived assets to their carrying value as of December 31, 2023 and 2022. The Company determined that the fair value of the long-lived assets included in each asset group were greater than their carrying values as of December 31, 2023. As of December 31, 2022, the Company determined that the carrying value of the long-lived assets included in the SAVES and Indoor Intelligence segments were greater than their fair values as of December 31, 2022. Therefore, an impairment loss of $1.5 million for the SAVES segment and $3.1 million for the Game Your Game product line which is part of the Indoor Intelligence segment was recorded for a total of $4.6 million as of December 31, 2022. The Company notes that as of December 31, 2023, the Grafiti LLC and Grafiti Holding Inc. divesiture, which includes the SAVES operating segment and the Game Your Game portion of the Indoor Intelligence segment, are presented as discontinued operations and, as such, the 2022 impairment losses have been excluded from both continuing operations and segment results for all periods presented.

Aggregate Amortization Expense:

Aggregate amortization expense was approximately $1.6 million and $6.1 million for the years ended December 31, 2023 and 2022, respectively, of which $0.8 million and $5.2 million pertain to discontinued operations.

Future amortization expense on intangibles assets is anticipated to be as follows (in thousands):


For the Years Ending December 31,	Amount
2024	$	697
2025	613
2026	417
2027	329
2028	152
Total	$	2,208