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GOODWILL AND OTHER INTANGIBLE ASSETS

6 Months Ended

Jun. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure [Text Block]

NOTE 4 – GOODWILL AND OTHER INTANGIBLE ASSETS

As of June 30, 2020 and December 31, 2019, goodwill was $68,697, which is net of the $35,060 impairment loss recognized in the fourth quarter of 2019. The Company evaluates the recoverability of goodwill annually and whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. As of June 30, 2020, there has been no impairment of goodwill based on the quantitative assessments performed by the Company.

The gross carrying amount and accumulated amortization of our intangible assets as of June 30, 2020 and December 31, 2019 are as follows:

	June 30, 2020
Intangible Assets	Weighted Average Amortization Period (in Years)		Gross		Accumulated Amortization			Net
Customer relationships		8.9	$	80,710	$	(24,252	)	$	56,458
Developed technology		6.0		10,001		(6,833	)		3,168
Reseller relationships		7.0		853		(853	)		-
Trade names		3.0		780		(195	)		585
Noncompete agreements		5.2		1,032		(766	)		266
		8.5	$	93,376	$	(32,899	)	$	60,477

	December 31, 2019
Intangible Assets	Weighted Average Amortization Period (in Years)		Gross		Accumulated Amortization			Net
Customer relationships		8.9	$	78,558	$	(19,757	)	$	58,801
Developed technology		6.0		10,001		(6,004	)		3,997
Reseller relationships		7.0		853		(853	)		-
Trade names		3.0		780		(78	)		702
Noncompete agreements		5.2		1,032		(682	)		350
		8.5	$	91,224	$	(27,374	)	$	63,850

We record amortization expenses using the straight-line method over the estimated useful lives of the intangible assets, as noted above. Amortization expenses recorded in Operating Expenses were $2,349 and $2,403, for the three months ended June 30, 2020 and 2019, respectively. Amortization expenses recorded in Cost of Sales were $397 and $360 for the three months ended June 30, 2020 and 2019, respectively.

Amortization expenses recorded in Operating Expenses were $4,698 and $4,821, for the six months ended June 30, 2020 and 2019, respectively. Amortization expenses recorded in Cost of Sales were $828 and $720 for the six months ended June 30, 2020 and 2019, respectively. There is no impairment of intangibles during the six months ended June 30, 2020 based on the qualitative assessment performed by the Company.

The following table summarizes the future estimated amortization expense relating to our intangible assets as of June 30, 2020:

Calendar Years	Amount
2020 (June to December)	$	5,374
2021		10,548
2022		10,015
2023		8,889
2024		8,662
Thereafter		16,989
	$	60,477