v3.19.1
Goodwill and Other Intangible Assets
12 Months Ended
Dec. 31, 2018
Goodwill And Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets

NOTE 6—GOODWILL AND INTANGIBLE ASSETS

Goodwill

The changes in the carrying amount of goodwill related to our various reporting units for the years ended December 31, 2018 and 2017 were as follows (in thousands):

 

 

 

OneClick

Argentina

 

 

OneClick

USA

 

 

Verykool Products (Discontinued Operation)

 

 

OneClick

Dominican

Republic

 

 

Total

 

Balance at December 31, 2016

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

2017 acquisitions

 

 

4,511

 

 

 

1,425

 

 

 

 

 

 

 

 

 

5,936

 

Balance at December 31, 2017

 

 

4,511

 

 

 

1,425

 

 

 

 

 

 

 

 

 

5,936

 

2018 acquisitions

 

 

 

 

 

 

 

 

3,343

 

 

 

4,399

 

 

 

7,742

 

Impairment charge

 

 

(4,511

)

 

 

(1,425

)

 

 

(3,343

)

 

 

(4,399

)

 

 

(13,678

)

Balance at December 31, 2018

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

The Company performs an impairment test of goodwill on an annual basis during the fourth quarter, or when circumstances indicate that the carrying value of goodwill might be impaired. As a result of our annual impairment test in the fourth quarter of fiscal 2018, the Company recognized goodwill impairment charges totaling $13,678,000, of which $3,343,000 was related to our verykool segment which was classified as a discontinued operation.

Definite-lived Intangible Assets

The Company’s definite-lived intangible assets arose from the OneClick and Unitron acquisitions.  These assets and related accumulated amortization consisted of the following as of December 31, 2018 and 2017 (in thousands):

 

 

 

December 31,

 

 

 

2018

 

 

2017

 

Tradenames

 

$

938

 

 

$

938

 

Covenants Not To Compete

 

 

258

 

 

 

258

 

Domain Name

 

 

2

 

 

 

2

 

Subtotal

 

 

1,198

 

 

 

1,198

 

Less accumulated amortization

 

 

(315

)

 

 

(63

)

Total

 

$

883

 

 

$

1,135

 

 

During 2018, the Company evaluated the intangibles in connection with its annual goodwill impairment analysis and recognized an impairment charge of $62,000 related to the write-off of the tradename and covenant not to compete from the Unitron acquisition.  The tradename and covenants not to compete related to OneClick were determined not to be impaired. Amortization expense for the years ended December 31, 2018 and 2017 amount to $266,000 and $54,000, respectively.  The OneClick trade name and the covenant are being amortized over 60 months and 48 months, respectively.  Amortization expense for the years ending December 31, 2019 through 2022 will be $252,000, $252,000, $236,000 and $143,000, respectively.