GOODWILL AND INTANGIBLES

6 Months Ended

Jun. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

At June 30, 2023 and December 31, 2022, goodwill consists of approximately $13.9 million and $13.7 million, respectively, resulting from the excess of the consideration paid over the fair value of net tangible and intangible assets acquired from the Func Food acquisition.

Intangible assets consist of acquired customer relationships and brands from the Func Food acquisition. The carrying amount and accumulated amortization of intangible assets as of June 30, 2023 and December 31, 2022, respectively, were as follows:


	June 30, 2023		December 31, 2022
Definite-lived intangible assets
Customer relationships	$	13,670	$	13,418
Less: accumulated amortization	(1,914)		(1,610)
Definite-lived intangible assets, net	$	11,756	$	11,808

Indefinite-lived intangible assets
Brands	$	446	$	2,984
Less: impairment	—		(2,576)
Effect of exchange rate changes	9		38
Indefinite-lived intangible assets, net	$	455	$	446
Intangibles-net	$	12,211	$	12,254

Customer relationships are amortized over an estimated useful life of 25 years and brands have an indefinite life. Amortization expense for the three months ended June 30, 2023 and 2022 was approximately $0.1 million, and $0.1 million, respectively. Amortization expense for the six months ended June 30, 2023 and 2022 was approximately $0.3 million, and $0.3 million, respectively. Amortization expense is reflected in selling, general and administrative expenses. See Note 2. Basis of Presentation and Summary of Significant Accounting Policies, for more information regarding the indefinite-lived intangible asset, Brands.

Other fluctuations in the amounts of goodwill and intangible assets are due to currency translation adjustments.

The following is the future estimated annualized amortization expense related to customer relationships:


2023	$	273
2024	547
2025	547
2026	547
2027	547
Thereafter	9,295
Total	$	11,756