Goodwill and Intangibles

Goodwill activity for the year ended December 31, 2019 and December 31, 2018 consisted of the following:



	2019			2018
Balance at beginning of year	$	21,476,000		$	2,403,000
Additions	—			21,476,000
Impairment	(4,100,000		)	(2,403,000		)
Balance at end of year	$	17,376,000		$	21,476,000

Due to the Company's financial performance and continued depressed stock price, the Company performed a quantitative analysis for both of its reporting units at September 30, 2019. During 2019, the Company incurred a decrease in margin in its Horizon Plastics reporting unit caused by selling price decreases that the Company has not yet been able to fully offset with material cost reductions. As a result of the quantitative analysis, the Company concluded that the carrying value of Horizon Plastics was greater than the fair value, which resulted in a goodwill impairment charge of $4,100,000 at September 30, 2019 representing 19% of the

goodwill related to the Horizon Plastics reporting unit. The company performed a qualitative assessment at December 31, 2019, indicating no additional goodwill impairment related to the Horizon Plastics reporting unit.

The Company’s annual impairment assessment at December 31, 2018 consisted of a quantitative analysis for both the Core Traditional and Horizon Plastics reporting units. It concluded that the carrying value of Core Traditional was greater than the fair value, which resulted in a goodwill impairment charge of $2,403,000. The analysis of the Company’s other reporting unit, Horizon Plastics, indicated no goodwill impairment charge as the excess of the estimated fair value over the carrying value of its invested capital was approximately 23% of the book value of its net assets.

Intangible assets at December 31, 2019 were comprised of the following:



Definite-lived Intangible Assets	Amortization Period	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Trade Name	25 Years	$	250,000	$	(48,000	)	$	202,000
Trademarks	10 Years	1,610,000		(315,000		)	1,295,000
Non-competition Agreement	5 Years	1,810,000		(709,000		)	1,101,000
Developed Technology	7 Years	4,420,000		(1,237,000		)	3,183,000
Customer Relationships	10-12 Years	9,330,000		(1,647,000		)	7,683,000
Total		$	17,420,000	$	(3,956,000	)	$	13,464,000

Intangible assets at December 31, 2018 were comprised of the following:



Definite-lived Intangible Assets	Amortization Period	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Trade Name	25 Years	$	250,000	$	(38,000	)	$	212,000
Trademarks	10 Years	1,610,000		(154,000		)	1,456,000
Non-competition Agreement	5 Years	1,810,000		(347,000		)	1,463,000
Developed Technology	7 Years	4,420,000		(605,000		)	3,815,000
Customer Relationships	10-12 Years	9,330,000		(863,000		)	8,467,000
Total		$	17,420,000	$	(2,007,000	)	$	15,413,000

The aggregate intangible asset amortization expense was $1,949,000 for the year ended December 31, 2019 and amortization expense is expected to be same each year through the year ended December 31, 2022 and $1,587,000 for the year ended December 31, 2023. The Company incurred $1,869,000 and $50,000 amortization expense for the years ended December 31, 2018 and 2017, respectively.

As of December 31, 2019, future intangible amortization were as follows:



	Amortization Expense
2020	$	1,949,000
2021	1,949,000
2022	1,949,000
2023	1,602,000
2024	1,587,000
2025 and thereafter	4,428,000
Total intangibles as of December 31, 2019	13,464,000