Intangible Assets and Goodwill

6 Months Ended

Jun. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible assets and goodwill

Intangible assets consisted of the following:


At June 30, 2022	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Finite lived intangible assets
Software	$	2,926	$	(1,819	)	$	1,107
Licenses		284,818		(17,301	)		267,517
Brand intangibles		1,144		(568	)		576
Non-compete agreements		280		(48	)		232
Total finite lived intangible assets		289,168		(19,736	)		269,432
Indefinite lived intangible assets
Brand intangibles		82,206		—			82,206
Total indefinite lived intangible assets		82,206		—			82,206
Intangible assets, net	$	371,374	$	(19,736	)	$	351,638


At December 31, 2021	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Finite lived intangible assets
Software	$	2,626	$	(1,353	)	$	1,273
Licenses		153,300		(11,311	)		141,989
Brand intangibles		1,144		(254	)		890
Non-compete agreements		280		(221	)		59
Total finite lived intangible assets		157,350		(13,139	)		144,211
Indefinite lived intangible assets
Brand intangibles		24,773		—			24,773
Total indefinite lived intangible assets		24,773		—			24,773
Intangible assets, net	$	182,123	$	(13,139	)	$	168,984

Amortization expense was $4,019 and $6,618 for the three and six months ended June 30, 2022, respectively ($2,345 and $3,076, respectively included in cost of sales) and $1,787 and $3,279 for the three and six months ended June 30, 2021, respectively ($621 and $1,108, respectively included in cost of sales).

Estimated future amortization expense for finite lived intangible assets for the next five years is as follows:


2022	$	8,236
2023	$	15,661
2024	$	15,234
2025	$	14,797
2026	$	14,748

The following table summarizes the activity in the Company’s goodwill balance:


Balance at December 31, 2021	$	90,326
Acquisitions (see Note 4)		150,272
Balance at June 30, 2022	$	240,598

Impairment of Intangible Assets


	For the Three Months Ended					For the Six Months Ended
		June 30, 2022		June 30, 2021			June 30, 2022		June 30, 2021
Finite lived intangible assets
Software		$	-	$	9		$	-	$	9
Licenses			—		—			—		-
Customer Relationships			—		2,000			—		2,000
Non-compete agreements			—		224			—		224
Total impairment of finite lived intangible assets			—		2,233			—		2,233
Indefinite lived intangible assets
Brand intangibles			—		1,400			—		1,400
Total impairment of indefinite lived intangible assets			—		1,400			—		1,400
Total impairment of intangible assets		$	-	$	3,633		$	-	$	3,633

In August 2021, the Company made the decision to undertake a strategic review process to explore, review and evaluate potential alternatives for its Arise business focused on maximizing shareholder value. As a result of this review, the Company recorded impairment of intangible assets of $3,633 for the six months ended June 30, 2021.