INTANGIBLE ASSETS, NET, AND GOODWILL

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

INTANGIBLE ASSETS, NET, AND GOODWILL

INTANGIBLE ASSETS, NET, AND GOODWILLIntangible assets include patent filing costs and other assets (domain name and other intangibles purchased from GVR, including customer relationships, technology and a trademark). Some of the patents were acquired from Superconductor Technologies Inc. as a result of an asset contribution and were recorded at their carryover basis of $216,000 and are being amortized over the remaining useful life of approximately one year as of December 31, 2021. Intangibles acquired as part of the purchase of GVR were initially recorded at their fair value and have been fully amortized. Patent filing costs related to issued patents are amortized over the estimated life of the patent, 11 to 20 years, once they are approved by their respective regulatory agency. There are $1.8 million of pre-issued patent costs not subject to amortization as of December 31, 2021. The domain name is being amortized over the approximate useful life of 10 years.

Intangible assets, net, consists of the following as of December 31, 2021 and 2020 (in thousands):

	2021		2020
Cost:
Patents	$	2,738	$	2,399
Other (1)	284		291
	3,022		2,690
Less: Accumulated amortization	(383)		(571)
Intangible assets, net	$	2,639	$	2,119

(1)    Includes the impact of foreign currency translation. The total impact at December 31, 2021 and 2020 was $7,000 and $17,000, respectively.    

During the year ended December 31, 2021 and 2020, we expensed $641,000 and $383,000, respectively, related to patents we either abandoned or wrote off as the technology is no longer supported by our current technology. The expense is included in research and development expense.

Amortization of intangible assets was $79,000 and $96,000 for the years ended December 31, 2021 and 2020, respectively. The following table summarizes the estimated amortization expense relating to the intangible assets as of December 31, 2021 (in thousands):

Years ending December 31,
2022	$	53
2023	52
2024	50
2025	50
2026	50
2027 and thereafter	561
Total amortization expense	$	816

Goodwill represents the excess of the purchase price over the fair value of the net assets acquired from GVR Trade. Goodwill is not amortized, but is subject to impairment tests on at least an annual basis and whenever circumstances suggest that goodwill may be impaired.

The change in the carrying amount of goodwill are as follows (in thousands):

	Goodwill
Balance, January 1, 2020	$	831
Effect of currency translation	80
Balance, December 31, 2020	$	911
Effect of currency translation	(33)
Balance, December 31, 2021	$	878