XML 51 R22.htm IDEA: XBRL DOCUMENT
v3.20.4

Intangible Assets and Goodwill | 9 Months Ended
--- | ---
Sep. 30, 2020
Goodwill and Intangible Assets Disclosure [Abstract] |
Intangible Assets and Goodwill |
9. | Intangible Assets and Goodwill
The Facebank reporting unit was developed by the Company’s former CEO, John Textor. On July 31, 2020, Mr. Textor resigned as a member of the Board of Directors of the Company. Upon the Merger, Mr. Textor became Head of Studio of the Company and was to manage the legacy Facebank reporting unit, which included human animation and digital likeness technologies. Mr. Textor submitted his resignation as Head of Studio, which is effective October 30, 2020. As of September 30, 2020, Mr. Textor was not performing substantive services for the Company. Mr. Textor’s continuing involvement was integral for further development of the Facebank reporting unit, and therefore represents a triggering event to assess the carrying value of its goodwill and intangible assets underlying the Facebank reporting unit. The Company performed an impairment analysis of the Facebank goodwill and intangible assets and during the three and nine months ended September 30, 2020, the Company recorded an intangible asset impairment charge of approximately $88.1 million and goodwill impairment charge of $148.6 million. After these impairment charges the Facebank reporting unit had no allocated goodwill and intangible assets of $13.0 million. The following table represents the impairment charges recorded during the 3rd quarter of 2020 related to the Company’s Facebank reporting unit (in thousands):
Intangible assets |  | $ | 88,059 |
Goodwill |  | $ | 148,622 |
Total impairment expense |  | $ | 236,681 |
Intangible Assets The Company performed a valuation of its intangible assets of the Facebank reporting unit as of September 30, 2020. The Company determined that the carrying value of the intangible assets exceeded their fair value. During the three and nine months ended September 30, 2020, the Company recorded an impairment charge of approximately $88.1 million, which was approximately 88% of the carrying value at September 30, 2020. Based on the impairment analysis, it was determined that the useful lives of human animation technologies, trademark and tradenames, animation and visual effects technologies, and digital assets library were reduced from 7 years to 5 years. The table below summarizes the Company’s intangible assets at September 30, 2020 and December 31, 2019 (in thousands):
|  |  |  |  | Weighted Average |  |  | September 30, 2020 |
|  | Useful Lives (Years) |  |  | Remaining Life (Years) |  |  | Intangible Assets |  |  | Intangible Asset Impairment |  |  | Accumulated Amortization |  |  | Net Balance |
Human animation technologies |  |  | 5 |  |  |  | 5 |  |  | $ | 123,436 |  |  |  | (79,884 | ) |  |  | (37,871 | ) |  | $ | 5,681 |
Trademark and trade names |  |  | 5 |  |  |  | 5 |  |  |  | 7,746 |  |  |  | (3,903 | ) |  |  | (2,379 | ) |  |  | 1,464 |
Animation and visual effects technologies |  |  | 5 |  |  |  | 5 |  |  |  | 6,016 |  |  |  | (1,868 | ) |  |  | (1,848 | ) |  |  | 2,300 |
Digital asset library |  |  | 5 |  |  |  | 5 |  |  |  | 7,536 |  |  |  | (1,830 | ) |  |  | (2,185 | ) |  |  | 3,522 |
Intellectual Property |  |  | 7 |  |  |  | - |  |  |  | 828 |  |  |  | (574 | ) |  |  | (254 | ) |  |  | - |
Customer relationships |  |  | 2 |  |  |  | 1.5 |  |  |  | 23,678 |  |  |  | - |  |  |  | (5,920 | ) |  |  | 17,758 |
fuboTV tradename |  |  | 9 |  |  |  | 8.5 |  |  |  | 38,197 |  |  |  | - |  |  |  | (2,122 | ) |  |  | 36,075 |
Software and technology |  |  | 9 |  |  |  | 8.5 |  |  |  | 181,737 |  |  |  | - |  |  |  | (10,097 | ) |  |  | 171,640 |
Total |  |  |  |  |  |  |  |  |  | $ | 389,174 |  |  | $ | (88,059 | ) |  | $ | (62,676 | ) |  | $ | 238,440 |
|  |  |  |  | Weighted Average |  |  | December 31, 2019 |
|  | Useful Lives (Years) |  |  | Remaining Life (Years) |  |  | Intangible Assets |  |  | Intangible Asset Impairment |  |  | Accumulated Amortization |  |  | Net Balance |
Human animation technologies |  |  | 7 |  |  |  | 6 |  |  | $ | 123,436 |  |  | $ | — |  |  | $ | (24,646 | ) |  | $ | 98,790 |
Trademark and trade names |  |  | 7 |  |  |  | 6 |  |  |  | 9,432 |  |  |  | (1,686 | ) |  |  | (1,549 | ) |  |  | 6,197 |
Animation and visual effects technologies |  |  | 7 |  |  |  | 6 |  |  |  | 6,016 |  |  |  | — |  |  |  | (1,203 | ) |  |  | 4,813 |
Digital asset library |  |  | 5-7 |  |  |  | 5.5 |  |  |  | 7,505 |  |  |  | — |  |  |  | (1,251 | ) |  |  | 6,254 |
Intellectual Property |  |  | 7 |  |  |  | 6 |  |  |  | 3,258 |  |  |  | (2,430 | ) |  |  | (236 | ) |  |  | 592 |
Customer relationships |  |  | 11 |  |  |  | 11 |  |  |  | 4,482 |  |  |  | (4,482 | ) |  |  | — |  |  |  | — |
Total |  |  |  |  |  |  |  |  |  | $ | 154,129 |  |  | $ | (8,598 | ) |  | $ | (28,885 | ) |  | $ | 116,646 |
The Company recorded amortization expense of $14.3 million and $5.2 million during the three months ended September 30, 2020 and 2019, respectively, and $33.8 million and $15.5 million during the nine months ended September 30, 2020 and 2019, respectively. The estimated future amortization expense associated with intangible assets is as follows (in thousands):
|  | Future Amortization |
2020 |  | $ | 9,731 |
2021 |  |  | 38,922 |
2022 |  |  | 30,043 |
2023 |  |  | 27,084 |
2024 |  |  | 27,010 |
Thereafter |  |  | 105,650 |
Total |  | $ | 238,440 |
Goodwill Using the guidance of ASC 350-20 - Goodwill, the Company determined that the carrying value of its Facebank reporting unit exceeded the fair value. During the three and nine months ended September 30, 2020, the Company recorded an impairment charge of approximately $148.1 million related to the goodwill associated with the Facebank reporting unit, which represents the total amount of goodwill allocated to Facebank. The following table is a summary of the changes to goodwill for the three and nine months ended September 30, 2020 (in thousands):
Balance - December 31, 2019 |  | $ | 227,763 |
Deconsolidation of Nexway |  |  | (51,168 | )
Balance - March 31, 2020 |  | $ | 176,595 |
Acquisition of fuboTV |  |  | 562,908 |
Less: transfer to asset held for sale |  |  | (28,541 | )
Balance - June 30, 2020 |  | $ | 710,962 |
Impairment expense |  |  | (148,622 | )
Measurement period adjustment on the fuboTV acquisition |  |  | (68,493 | )
Balance - September 30, 2020 |  | $ | 493,847 |

X
- References No definition available. + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI http://asc.fasb.org/topic&trid=2144416 + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration