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Goodwill and Intangible Assets | 9 Months Ended
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Sep. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill The following table sets forth the changes in the carrying amount of goodwill for the nine months ended September 30, 2022:
|  | Amounts
Balance at December 31, 2021 |  | $ | 6,570 |
Sale of KVH Media Group Entertainment Limited |  | (1,038) |
Foreign currency translation adjustment |  | (295) |
Balance at September 30, 2022 |  | $ | 5,237 |
Intangible Assets The changes in the carrying amount of intangible assets during the nine months ended September 30, 2022 are as follows:
|  | Amounts
Balance at December 31, 2021 |  | $ | 1,287 |
Amortization expense |  | (409) |
Intangible assets acquired in asset acquisition |  | 42 |
Sale of KVH Media Group Entertainment Limited |  | (352) |
Foreign currency translation adjustment |  | (101) |
Balance at September 30, 2022 |  | $ | 467 |
Intangible assets arose from the acquisition of KVH Media Group (acquired as Headland Media Limited) in May 2013. These intangible assets are being amortized on a straight-line basis over the estimated useful life of 10 years for acquired subscriber relationships. The intangible assets were recorded in pounds sterling and fluctuations in exchange rates cause these amounts to increase or decrease from time to time. As a result of the sale of KVH Media Group Entertainment Limited in April 2022, the Company determined the goodwill and intangible assets associated with this business based on an income approach which estimated the fair value of the reporting unit before and after the sale, and included such amounts in the determination of the gain on sale of the subsidiary. In January 2017, the Company completed the acquisition of certain subscriber relationships from a third party. This acquisition did not meet the definition of a business under ASC 2017-01, Business Combinations (Topic 805)-Clarifying the Definition of a Business, which the Company adopted on October 1, 2016. The Company ascribed $100 of the initial purchase price to the acquired subscriber relationships definite-lived intangible assets with an initial estimated useful life of 10 years. Under the asset purchase agreement, the purchase price includes a component of contingent consideration under which the Company is required to pay a percentage of recurring revenues received from the acquired subscriber relationships through 2026 up to a maximum annual payment of $114. As of September 30, 2022, the carrying value of the intangible assets acquired in the asset acquisition was $450. As the acquisition did not represent a business combination, the contingent consideration arrangement is recognized only when the contingency is resolved and the consideration is paid or becomes payable. The amounts payable under the contingent consideration arrangement, if any, will be included in the measurement of the cost of the acquired subscriber relationships. An additional $42 and $47 of consideration was earned under the contingent consideration arrangement during the nine months ended September 30, 2022 and 2021, respectively. Acquired intangible assets are subject to amortization. The following table summarizes acquired intangible assets at September 30, 2022 and December 31, 2021, respectively:
|  | Gross Carrying Amount |  | Accumulated Amortization |  | Net Carrying Value
September 30, 2022 |  |  |  |  |  |
Subscriber relationships |  | $ | 7,624 |  |  | $ | 7,157 |  |  | $ | 467 |
Distribution rights |  | 315 |  |  | 315 |  |  | — |
Internally developed software |  | 446 |  |  | 446 |  |  | — |
Proprietary content |  | 153 |  |  | 153 |  |  | — |
Intellectual property |  | 2,284 |  |  | 2,284 |  |  | — |
|  | $ | 10,822 |  |  | $ | 10,355 |  |  | $ | 467 |
December 31, 2021 |  |  |  |  |  |
Subscriber relationships |  | $ | 8,033 |  |  | $ | 6,746 |  |  | $ | 1,287 |
Distribution rights |  | 315 |  |  | 315 |  |  | — |
Internally developed software |  | 446 |  |  | 446 |  |  | — |
Proprietary content |  | 153 |  |  | 153 |  |  | — |
Intellectual property |  | 2,284 |  |  | 2,284 |  |  | — |
|  | $ | 11,231 |  |  | $ | 9,944 |  |  | $ | 1,287 |
Amortization expense related to intangible assets was $90 and $277 for the three months ended September 30, 2022, respectively, and $409 and $833 for the nine months ended September 30, 2022 and 2021, respectively. Amortization expense was categorized as general and administrative expense. As of September 30, 2022, the total weighted average remaining useful lives of the definite-lived intangible assets was 3.2 years. Estimated future amortization expense remaining at September 30, 2022 for intangible assets acquired was as follows: Years ending December 31,
Remainder of 2022 | $ | 87 |
2023 | 168 |
2024 | 68 |
2025 | 68 |
2026 | 68 |
Thereafter | 8 |
Total future amortization expense | $ | 467 |
For definite-lived intangible assets, the Company assesses the carrying value of these assets whenever events or circumstances indicate that the carrying value may not be recoverable. Recoverability of assets to be held and used is measured by comparing the carrying amount of an asset, or asset group, to the future undiscounted cash flows expected to be generated by the asset, or asset group. There were no events or changes in circumstances during the nine months ended September 30, 2022 which indicated that an assessment of the impairment of goodwill and intangible assets was required.

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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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