XML 29 R11.htm IDEA: XBRL DOCUMENT
v3.23.1

Goodwill and Intangible Assets | 12 Months Ended
--- | ---
Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Intangible Assets | Note 5 – Goodwill and Intangible Assets Goodwill Goodwill consisted of the following:
Schedule of goodwill and indefinite-lived intangible assets |  |  |
|  | Total |
Balance at December 31, 2021, before accumulated impairment loses |  | $ | 12,948 |
Accumulated impairment losses |  |  | (1,244 | )
Balance at December 31, 2021 |  | $ | 11,704 |
Balance at December 31, 2022 |  | $ | 11,704 |
Goodwill The Company performed the annual impairment assessment of goodwill for its single reporting unit as of December 31, 2022 and 2021, noting no impairment loss. Considerable management judgment is necessary to evaluate goodwill for impairment. Lifeway estimates fair value using widely accepted valuation techniques including discounted cash flows and market multiples analysis with respect to its single reporting unit. These valuation approaches are dependent upon a number of factors, including estimates of future growth rates, its cost of capital, capital expenditures, income tax rates, and other variables. Assumptions used in the Company’s valuations were consistent with its internal projections and operating plans. Lifeway’s discounted cash flows forecast could be negatively impacted by a change in the competitive landscape, any internal decisions to pursue new or different strategies, a loss of a significant customer, or a significant change in the market place including changes in the prices paid for its products or changes in the size of the market for its products. Additionally, under the market approach analysis, the Company used significant other observable inputs including various guideline company comparisons. Lifeway bases its fair value estimates on assumptions it believes to be reasonable, but which are unpredictable and inherently uncertain. Changes in these estimates or assumptions could materially affect the determination of fair value and the conclusions of the quantitative goodwill test for the Company’s one reporting unit. Approximately $1,664 of goodwill is deductible for income tax purposes. Intangible Assets The gross carrying amounts and accumulated amortization of intangible assets consisted of the following:
Schedule of finite-lived intangible assets |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | December 31, 2022 |  |  | December 31, 2021 |
|  | Gross |  |  |  |  |  | Net |  |  | Gross |  |  |  |  |  | Net |
|  | Carrying |  |  | Accumulated |  |  | Carrying |  |  | Carrying |  |  | Accumulated |  |  | Carrying |
|  | Amount |  |  | Amortization |  |  | Amount |  |  | Amount |  |  | Amortization |  |  | Amount |
Recipes |  | $ | 44 |  |  | $ | (44 | ) |  | $ | – |  |  | $ | 44 |  |  | $ | (44 | ) |  | $ | – |
Customer lists and other customer related intangibles |  |  | 4,529 |  |  |  | (4,529 | ) |  |  | – |  |  |  | 4,529 |  |  |  | (4,529 | ) |  |  | – |
Customer relationship |  |  | 3,385 |  |  |  | (1,212 | ) |  |  | 2,173 |  |  |  | 3,385 |  |  |  | (1,052 | ) |  |  | 2,333 |
Brand names |  |  | 7,948 |  |  |  | (2,683 | ) |  |  | 5,265 |  |  |  | 7,948 |  |  |  | (2,303 | ) |  |  | 5,645 |
Formula |  |  | 438 |  |  |  | (438 | ) |  |  | – |  |  |  | 438 |  |  |  | (438 | ) |  |  | – |
Total intangible assets, net |  | $ | 16,344 |  |  | $ | (8,906 | ) |  | $ | 7,438 |  |  | $ | 16,344 |  |  | $ | (8,366 | ) |  | $ | 7,978 |
Estimated amortization expense on intangible assets for the next five years is as follows:
Schedule of amortization expense on intangible assets |  |  |
Year |  | Amortization |
2023 |  | $ | 540 |
2024 |  | $ | 540 |
2025 |  | $ | 540 |
2026 |  | $ | 540 |
2027 |  | $ | 540 |

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 -Topic 350 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//350/tableOfContent + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration