Intangible Assets and Goodwill

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

INTANGIBLE ASSETS AND GOODWILL

NOTE 8—INTANGIBLE ASSETS AND GOODWILL

Intangible assets at December 31, 2021 and 2020, consisted of the following (in thousands):

	December 31,			December 31,
	2021			2020
Customer relationships	$	24,148		$	749
Tradenames		26,935			1,368
Total intangible assets		51,083			2,117
Less: accumulated amortization		(6,871	)		(735	)
Intangible assets, net	$	44,212		$	1,382

In connection with the acquisition of Goedeker Television, the Company identified intangible assets of $2.1 million, representing tradenames and customer relationships. For the Appliances Connection acquisition, the Company identified intangible assets of $50.1 million, representing tradenames and customer relationships.

These assets are being amortized on a straight-line basis over their average estimated useful life of 5.0 years. Amortization expense for the years ended December 31, 2021 and 2020 was $6.1 million and $0.4 million, respectively.

Estimated amortization expense for the trade names and customer relationships for the next five years consists of the following as of December 31, 2021 (in thousands):

Year Ending December 31,	Amount
2022	$	10,217
2023		10,217
2024		9,905
2025		9,793
2026		4,080
Total	$	44,212

The changes in the carrying amount of goodwill for the years ended December 31, 2021 and 2020, are as follows (in thousands):

Balance at December 31, 2019	$	-
Goodwill from acquisition of Goedeker		4,726
Balance at December 31, 2020	$	4,726
Goodwill from acquisition of Appliances Connection		185,720
Goodwill from acquisition of Appliances Gallery		1,168
Balance at December 31, 2021	$	191,614