Goodwill and intangible assets

The Company has

one

reporting unit and goodwill represents the synergies realized in its acquisitions in

2016

of Imugen, Inc., or Imugen, and Immunetics, Inc., or Immunetics. In conjunction with the Transaction (see Note

19.

Discontinued operations

) and pursuant to ASC

350.

Intangibles-Goodwill and other

, the Company allocated a portion of the goodwill to the business being disposed of based on the relative fair value method. As a result, goodwill of

$1.5

million was allocated to assets held for sale in the

third

quarter of

2018,

the period that the held for sale election was determined. The carrying amount of goodwill reflected in the Company’s consolidated balance sheets was

$2.5

million at

December 31, 2019

and

2018

Acquired intangible assets consisted of the following as of

December 31, 2019

and

2018

(in thousands):

	As of December 31, 2019
	Amortization period (years)	Gross carrying amount		Accumulated Amortization		Net carrying amount
Licenses	5-10	$	680	$	593	$	87
Total		$	680	$	593	$	87

	As of December 31, 2018
	Amortization period (years)	Gross carrying amount		Accumulated Amortization		Net carrying amount
Licenses	5-10	$	652	$	591	$	61
Total		$	652	$	591	$	61

In conjunction with the Transaction, the net carrying amount of definite-lived intangible assets recorded in the acquisition of Imugen were disposed of and netted into the gain on sale.

The weighted average amortization period of our definite-lived intangi

ble assets is

9.8

years. Amortization expense from continuing operations for the years ended

December 31, 2019

and

2018

was

$21,000

and

$93,000,

respectively. Amortization expense related to acquired intangible assets is estimated at

$21,000

per year for

2020

and

2021.

Impairment review

Immunetics definite-lived intangible assets

The Company reviews the carrying value of its long-lived assets, including other intangible assets, for impairment whenever events or changes in circumstances indicate that the carrying value of an asset or asset group

may

not

be recoverable. The Company evaluates recoverability based upon undiscounted future cash flows expected to be generated by such assets (group) over the remaining useful lives. On

November 6, 2018,

the Company sold its U.S. Laboratory Services Business to Quest pursuant to a Limited Liability Company Interest Purchase Agreement for approximately

$170

million (See Note

19.

Discontinued operations).

Following this Transaction, Management held strategic meetings that resulted in an impairment review of the assets group related to Immunetics. Upon impairment review, the Company recorded a non-cash impairment charge of

$879,000

to write off the Immunetics intangible assets in the

fourth

quarter of

2018.

Goodwill

Goodwill is

not

amortized but is reviewed for impairment at least annually in the

fourth

quarter of the year, or when events or changes in the business environment indicate that all, or a portion, of the carrying value of the reporting unit

may

longer be recoverable, using the

two

-step impairment review. Based on the results of the Company’s annual review of goodwill, it has been determined that there is

impairment loss to be recorded in the

fourth

quarter of

2019.