Goodwill and Other Intangible Assets

9 Months Ended

Sep. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

Goodwill represents the cost of an acquisition in excess of the fair values assigned to identifiable net assets acquired. The Company recorded Goodwill of $307.4 million as part of the HomeLink® acquisition in 2013 and recorded an additional $3.9 million in Goodwill as part of the acquisition of Vaporsens that occurred in the second quarter of 2020. See Note 16 for more information on the Vaporsens transaction. The carrying value of Goodwill as of September 30, 2020 and December 31, 2019 was $311.2 million and $307.4 million, respectively.

	Carrying Amount
Balance as of December 31, 2019	$	307,365,845
Acquisitions	3,850,711
Divestitures	—
Impairments	—
Other	—
Balance as of September 30, 2020	$	311,216,556

In addition to annual impairment testing, which is performed as of the first day of the fourth quarter, the Company continuously monitors for events and circumstances that could negatively impact the key assumptions in determining fair value of goodwill or other intangible assets thus resulting in the need for interim impairment testing, including long-term revenue growth projections, profitability, discount rates, recent market valuations from transactions by comparable companies, volatility in the Company's market capitalization, and general industry, market and macroeconomic conditions. The impact of COVID-19 was again considered in the most recently completed quarter, but did not indicate the need for interim impairment testing.

The Company also acquired In-Process Research & Development as part of the acquisition of Vaporsens that occurred in the second quarter of 2020 and the acquisition of Air-Craftglass Production BV ("Air-Craftglass") in the third quarter of 2020. See Note 16 for more information on these transactions.

The patents and intangible assets and related change in carrying values are set forth in the tables below:

As of September 30, 2020:

Other Intangible Assets	Gross		Accumulated Amortization		Net		Assumed Useful Life
Gentex Patents	$	38,011,452	$	(23,982,357)	$	14,029,095	Various
Vaporsens Technology Licenses	292,943		(35,002)		257,941		Various
Other Intangible Assets
HomeLink® Trade Names and Trademarks	$	52,000,000	$	—	$	52,000,000	Indefinite
HomeLink® Technology	180,000,000		(105,000,000)		75,000,000		12 years
Existing Customer Platforms	43,000,000		(30,100,000)		12,900,000		10 years
Exclusive Licensing Agreement	96,000,000		—		96,000,000		Indefinite
Vaporsens In-Process R&D	11,000,000		—		11,000,000		Indefinite
Air-Craftglass In-Process R&D	1,011,399		—		1,011,399		Indefinite
Total Other Intangible Assets	$	383,011,399	$	(135,100,000)	$	247,911,399
Total Patents & Other Intangible Assets	$	421,315,794	$	(159,117,359)	$	262,198,435

As of December 31, 2019:

Other Intangible Assets	Gross		Accumulated Amortization		Net		Assumed Useful Life
Gentex Patents	$	37,328,963	$	(22,491,010)	$	14,837,953	Various
Other Intangible Assets
HomeLink® Trade Names and Trademarks	$	52,000,000	$	—	$	52,000,000	Indefinite
HomeLink® Technology	180,000,000		(93,750,000)		86,250,000		12 years
Existing Customer Platforms	43,000,000		(26,875,000)		16,125,000		10 years
Exclusive Licensing Agreement	96,000,000		—		96,000,000		Indefinite
Total Other Intangible Assets	$	371,000,000	$	(120,625,000)	$	250,375,000
Total Patents & Other Intangible Assets	$	408,328,963	$	(143,116,010)	$	265,212,953

Amortization expense on patents and intangible assets was approximately $5.6 million and $16.8 million during the three and nine months ended September 30, 2020, respectively, compared to approximately $5.6 million and $16.8 million for the same periods ended September 30, 2019, respectively.Excluding the impact of any future acquisitions, the Company estimates amortization expense for each of the years ending December 31, 2020 and 2021 to be approximately $22 million annually, for the year ending December 31, 2022 to be approximately $21 million, for the year ending December 31, 2023 to be approximately $19 million, and for the year ending December 31, 2024 to be approximately $16 million.