Investment in Joint Ventures

12 Months Ended

Dec. 31, 2021

Equity Method Investments and Joint Ventures [Abstract]

Investment in Joint Ventures

Investment in Joint Ventures

Effective February 7, 2016, Ebix and Vayam Technologies Ltd ("Vayam") formed a joint venture named Ebix Vayam Limited JV. This joint venture was established to carry out IT projects in the government sector of the country of India, particularly in regards to the implementation of e-governance projects in the areas of education and healthcare. Ebix has a 51% equity interest in the joint venture, and Vayam has a 49% equity interest in the joint venture. Ebix is fully consolidating the operations of Ebix Vayam Limited JV into the Company's consolidated financial statements and separately reporting the Vayam minority, non-controlling interest in the joint venture's net income and equity. Vayam is also a customer of Ebix Vayam Limited JV, and during the twelve months ending December 31, 2021 and 2020, Ebix Vayam Limited JV recognized $784 thousand and $667 thousand, respectively, of revenue from Vayam. As of December 31, 2021, Ebix Vayam Limited JV had $17.0 million of accounts receivable with Vayam, net of the estimated allowance for doubtful accounts receivable in the amount of $7 million. As of December 31, 2020, Ebix Vayam Limited JV had $20.5 million of accounts receivable with Vayam, net of the estimated allowance for doubtful accounts receivable in the amount of $11.3 million.

Effective September 1, 2015, Ebix and IHC formed a joint venture named EbixHealth JV. This joint venture was established to promote and market a best practices administration data exchange for health and pet insurance lines of business nationally. Ebix has a 51% equity interest in the joint venture and IHC has a 49% equity interest in the joint venture. IHC is also

a customer of EbixHealth JV, and during the twelve months ending December 31, 2021 and 2020, EbixHealth JV recognized $1.5 million and $1.9 million, respectively, of revenue from IHC. As of December 31, 2021 and 2020, IHC had $154 thousand and $63 thousand, respectively, of accounts receivable with EbixHealth JV. Furthermore, as a related party, IHC also has been a customer of Ebix, and during the twelve months ending December 31, 2021 and 2020, the Company recognized $131 thousand and $162 thousand, respectively, of revenue from IHC. As of December 31, 2021 and 2020, Ebix had $83 thousand and $2 thousand, respectively, of outstanding accounts receivable from IHC. EbixHealth JV has a $1.8 million note due to IHC. Additionally, based on the final purchase price allocation valuation report for EbixHealth JV it was concluded that the customer relationship with IHC, our joint venture partner, to be by its nature, an indefinite-lived customer relationship. During 2020, as a result of the annual impairment analysis performed, the Company concluded that the IHC customer relationship indefinite-lived intangible asset associated with the Company's EbixHealth JV had been impaired and the Company recorded a $6.2 million impairment charge. In addition, the Company concluded that the IHC customer relationship intangible was no longer considered indefinite-lived and is being amortized over the estimated remaining life of 10 years. The Company recorded $500 thousand in amortization expense related to the IHC customer relationship intangible during the twelve months ending December 31, 2021.