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GOODWILL (Tables)
 12 Months Ended
Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Goodwill

The changes in the carrying amount of goodwill for the years ended December 31, 2021 and 2020 are as follows:

US dollars

Telematics

services

Telematics products

Total

(in thousands)

Balance as of January 1, 2020

43,383

6,703

50,086

Changes during 2020:

Impairment (**)

(9,479

)

(1,029

)

(10,508

)

Translation differences

248

36

284

Balance as of December 31, 2020 (*)

34,152

5,710

39,862

Changes during 2021:

Translation differences

63

74

137

Balance as of December 31, 2021 (*)

34,215

5,784

39,999

(*)

The accumulated amount of goodwill impairment loss as of December 31, 2021, and 2020 was US$ 29.89 million.

 

 

(**)

As a result of the circumstances described in note 9(*) the Company recorded on June 30, 2020, a goodwill impairment in the total amount of US$ 10.5 million in connection with two reporting units (both units related to Road track operations). One reporting unit within the Telematics services and the other reporting unit within the Telematics product's segments. The impairment was based on valuation performed by the management using the assistance of a third-party appraiser in accordance with the income approach. The significant assumptions used for the assessment were 3.5 years of projected net cash flows, a discount rate of 17.5% and a long-term growth rate of 0.5%.

 

 

The Company, with the assistance of a third-party appraiser, performed the annual goodwill impairment test, as of June 30, 2021 and reached to a conclusion that no impairment should be recorded at that point.

 

 

The Company has historically performed an annual goodwill assessment as of June 30 of each year or more often if indicators of impairment are presented. following the second closing of the RT acquisition, the Company decided to change the date of its annual impairment assessment from June 30 to December 31. Accordingly, the Company performed a qualitative assessment as of December 31, 2021, and concluded that the qualitative assessment did not result in a more likely than not indication of impairment, and therefore no further impairment testing was required, with respect to such unit.