Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

24. Goodwill and Intangible Assets

Goodwill

The table below sets forth goodwill which is tested annually for impairment on November 30


	Total
Balance at January 1, 2022	$	85,856
Changes		—

Balance at December 31, 2022	$	85,856

Goodwill was tested for impairment on November 30, 2022. The quantitative impairment test was performed using a market approach, whereby the market capitalization of the Company (a single reporting unit) was compared to its carrying value. The market capitalization was derived from the Company’s publicly traded stock price plus a reasonable control premium. The fair value of the reporting unit exceeded its carrying value and therefore no impairment was recognized.

Goodwill arising from the ETFS Acquisition of $84,057 is not deductible for tax purposes as the acquisition was structured as a stock acquisition occurring in the

U.K

. The remainder of the goodwill is deductible for U.S. tax purposes.

Intangible Assets

The table below sets forth the Company’s intangible assets which are tested annually for impairment on November 30


Item	Gross Asset		Accumulated Amortization			Net Asset
ETFS acquisition	$	601,247	$	—		$	601,247
Software development		2,370		(50	)		2,320

Balance at December 31, 2022	$	603,617	$	(50	)	$	603,567

ETFS Acquisition (Indefinite-Lived)

In connection with the ETFS Acquisition, which was completed on April 11, 2018, the Company identified intangible assets valued at $601,247 related to the right to manage AUM through customary advisory agreements. These intangible assets were determined to have indefinite useful lives and are not deductible for tax purposes.

The Company performed its indefinite-lived intangible asset impairment test related to its ETFS customary advisory agreements on November 30, 2022. The results of this analysis identified no indicators of impairment to be recognized based upon a quantitative assessment (discounted cash flow analysis) which relied upon significant unobservable inputs including projected revenue growth rates ranging from 3% to 8% (5% weighted average) and a weighted average cost of capital of 11.0%.

Software Development (Finite-Lived)

Internally-developed software is amortized over a useful life of three years. During the year ended December 31, 2022, the Company recognized amortization expense on internally-developed software of $50.

As of December 31, 2022, expected amortization expense for the unamortized finite-lived intangible assets for the next five years and thereafter is as follows:




2023	$	700
2024		790
2025		740
2026		90
2027		—
2028 and thereafter		—

Total expected amortization expense	$	2,320

The weighted-average remaining useful life of the finite-lived intangible

assets is 2.9 years.