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Goodwill and Other Intangible Assets | 9 Months Ended
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Sep. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Other Intangible Assets | Note 6. Goodwill and Other Intangible Assets Goodwill and Other Intangible Assets The Company’s results are affected by numerous macroeconomic factors including inflation, consumer spending confidence and global supply chains. In 2022, we have experienced a higher rate of inflation than in recent years resulting in higher cost of goods, selling expenses, and general and administrative expenses. Such increases have had a negative impact on the Company’s revenue and profit margin which have contributed to a decline in the Company’s market capitalization and have been considered triggering events during the third quarter 2022 and accordingly, the Company performed interim goodwill and long-lived asset quantitative impairment tests as of September 30, 2022. Goodwill and Long-lived Assets Impairment Test The Company estimated the fair value of goodwill and long-lived assets using both the income approach and market approach. The income approach incorporates the use of a discounted cash flow model that involves management assumptions that are based upon future growth projections. Assumptions include estimates of future revenues, growth rates which take into account estimated inflation rates, estimates of future levels of gross profit and operating profit, projected capital expenditures and discount rates based upon industry and competitor analyses. The market approach, specifically the guideline public company method, which estimates the fair value of the Company using revenue and EBITDA multiples of selected public company peers that have similar characteristics to the Company. Upon completing both the income approach and market approach, the Company determined that its fair value exceeded the net carry values of their assets and liabilities. As such, goodwill and long-lived assets were not impaired as of September 30, 2022. Acquired Intangible Assets Acquired identifiable intangible assets, and related accumulated amortization, as of September 30, 2022 and December 31, 2021 consist of:
|  | September 30, 2022 |
|  | Gross Carrying Value |  |  | Accumulated Amortization |  |  | Net Book Value |
|  | (in thousands) |
Customer relationships |  | $ | 8,355 |  |  | $ | 6,843 |  |  | $ | 1,512 |
Tradenames |  |  | 3,066 |  |  |  | 960 |  |  |  | 2,106 |
Developed technology |  |  | 1,884 |  |  |  | 642 |  |  |  | 1,242 |
Foreign currency |  |  | (1,699 | ) |  |  | (1,632 | ) |  |  | (67 | )
Total Intangible Assets |  | $ | 11,606 |  |  | $ | 6,813 |  |  | $ | 4,793 |
|  | December 31, 2021 |
|  | Gross Carrying Value |  |  | Accumulated Amortization |  |  | Net Book Value |
|  | (in thousands) |
Customer relationships |  | $ | 8,355 |  |  | $ | 6,315 |  |  | $ | 2,040 |
Tradenames |  |  | 3,066 |  |  |  | 730 |  |  |  | 2,336 |
Developed technology |  |  | 1,884 |  |  |  | 440 |  |  |  | 1,444 |
Foreign currency |  |  | (896 | ) |  |  | (865 | ) |  |  | (32 | )
Total Intangible Assets |  | $ | 12,409 |  |  | $ | 6,620 |  |  | $ | 5,788 |
In connection with the October 2012 acquisition of TB Europe, the acquired intangible assets related to customer relationships is being amortized over an estimated useful life of thirteen years with the amortization being included within sales and marketing expense. In May 2019, the Company completed its acquisition of the business and assets of the ROCCAT business, and in January 2021, the Company completed its acquisition of the business and assets of the Neat Microphones business. The respective acquired intangible assets relating to developed technology, customer relationships and trade names are subject to amortization. Amortization expense related to definite lived intangible assets of $0.3 million and $0.9 million was recognized for the three and nine months ended September 30, 2022, respectively, and $0.3 million and $0.9 million was recognized for the three and nine months ended September 30, 2021, respectively. As of September 30, 2022, estimated annual amortization expense related to definite lived intangible assets in future periods is as follows:
|  | (in thousands) |
2022 |  | $ | 318 |
2023 |  |  | 1,041 |
2024 |  |  | 1,008 |
2025 |  |  | 889 |
2026 |  |  | 637 |
Thereafter |  |  | 967 |
Total |  | $ | 4,860 |
There were no changes in the carrying values of goodwill for the three months ended September 30, 2022 from the balance as of December 31, 2021.

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- 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 https://asc.fasb.org/topic&trid=2144416 + Details
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