Impairment Considerations (goodwill and intangibles)

The current Covid-19 pandemic has caused a significant deterioration in global economic conditions, including high levels of unemployment and a significant contraction in economic activity. Many economists and analysts believe the Covid-19 pandemic has resulted or could result in an economic recession or depression. We evaluate the carrying value of goodwill and intangibles for impairment whenever management believes indicators of impairment might exist. A significant deterioration in macroeconomic conditions is a key indicator of possible impairment. In addition to macroeconomic conditions, management considered the factors in the FASB's Accounting Standards Codification Topic 350 when analyzing goodwill and intangibles for possible impairment, including the following:

Conditions in the global SMT and semiconductor capital equipment markets (including conditions resulting from the Covid-19 pandemic);
Our revenue and profitability in the nine months ended September 30, 2020;
Our backlog at September 30, 2020, which stood at $17.7 million;
Our forecasts for revenue and profitability for the fourth quarter of 2020 and beyond;
The manner of use and applicability of our intangibles, which is not expected to change; and
Our stock market capitalization, which is significantly greater than our net book value.

After carefully considering the factors outlined above, among others, we determined that it is more likely than not that our goodwill and intangibles were not impaired as of September 30, 2020.

Intangible assets consisted of the following:


	September 30, 2020							December 31, 2019
(In thousands)	Gross Carrying Amount		Accumulated Amortization			Net		Gross Carrying Amount		Accumulated Amortization			Net
Patents	$	3,014	$	(2,772	)	$	242	$	2,898	$	(2,662	)	$	236
Software	206		(193		)	13		206		(170		)	36
Marketing assets and customer relationships	101		(70		)	31		101		(63		)	38
Total intangible assets	$	3,321	$	(3,035	)	$	286	$	3,205	$	(2,895	)	$	310

Amortization expense in the three and nine months ended September 30, 2020 and the three and nine months ended September 30, 2019 was as follows:

Estimated aggregate amortization expense based on current intangible assets for the next five years is expected to be as follows: $48,000 for the remainder of 2020; $133,000 in 2021; $75,000 in 2022; $28,000 in 2023; and $2,000 in 2024.