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Goodwill and Intangible Assets, Net | 12 Months Ended
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Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Intangible Assets, Net | Note 10: Goodwill and Intangible Assets, Net Goodwill In 2013, the Company recognized $10.4 million in goodwill, representing the excess of the fair value of the consideration for the merger with A Squared over net identifiable assets acquired. As a result of the ChizComm acquisition, the consideration exceeded the fair value of the assets acquired by $9.6 million. Accordingly, this amount was recorded as goodwill at the time of the acquisition. As ChizComm Ltd. is a Canadian company with CAD being its functional currency, goodwill will change each period due to currency exchange differences. The Company has performed its annual review of goodwill and its indefinite lived intangible asset during the fourth quarter of 2021. Goodwill on the Company’s consolidated financial statements relates to both the Content Production & Distribution reporting unit and the Media Advisory & Advertising Services reporting unit. The Company performed a qualitative assessment of the Content Production & Distribution reporting unit and determined that an impairment was not indicated. Due to a decrease in projected cash flows, the Company elected to initially perform a quantitative assessment on its Media Advisory & Advertising Services segment. The fair value of the Media Advisory & Advertising Services reporting unit in accordance with the goodwill impairment test was determined using the income and market approaches. The income approach employs the discounted cash flow method reflecting projected cash flows expected to be generated by market participants and then adjusted for time value of money factors and requires management to make significant estimates and assumptions related to forecasts of future revenues, operating margins, and discount rates. The market approach utilizes an analysis of comparable publicly traded companies and requires management to make significant estimates and assumptions related to the forecasts of future revenues, earnings before interest, taxes, depreciation, and amortization (EBITDA) and multiples that are applied to management’s forecasted revenues and EBITDA estimates. The carrying value of the Media Advisory & Advertising Services reporting unit, which is comprised of the ChizComm operations, exceeded its fair value, resulting in an impairment of goodwill of $4.8 million. The following table summarizes the changes in the carrying amount of goodwill by reportable segment (in thousands):
Schedule of Goodwill |  |  |  |  |  |  |  |  |  |  |  |
|  | Content Production & Distribution |  |  | Media Advisory & Advertising Services |  |  | Total |
Goodwill as of December 31, 2020 |  | $ | 10,366 |  |  | $ | – |  |  | $ | 10,366 |
Acquisition of ChizComm Entities |  |  | – |  |  |  | 9,607 |  |  |  | 9,607 |
Goodwill Impairment |  |  |  |  |  |  | (4,778 | ) |  |  | (4,778 | )
Foreign Currency Translation Adjustment |  |  | – |  |  |  | 32 |  |  |  | 32 |
Goodwill as of December 31, 2021 |  | $ | 10,366 |  |  | $ | 4,861 |  |  | $ | 15,227 |
Intangible Assets, Net The Company had the following intangible assets (in thousands): Intangible Assets, Net
Schedule of Intangible Asset |  |  |  |  |  |  |  |
|  | As of December 31, |
|  | 2021 |  |  | 2020 |
Trademarks (a) |  | $ | 130 |  |  | $ | 130 |
Customer Relationships (b) |  |  | 6,132 |  |  |  | – |
Non-Compete (c) |  |  | 48 |  |  |  | – |
Trade names (d) |  |  | 4,000 |  |  |  | – |
Other Intangible Assets (a) |  |  | 303 |  |  |  | 299 |
Intangible Assets, Gross |  |  | 10,613 |  |  |  | 429 |
Foreign Currency Translation Adjustment |  |  | 24 |  |  |  | – |
Less Accumulated Amortization |  |  | (904 | ) |  |  | (400 | )
Intangible Assets, Net |  | $ | 9,733 |  |  | $ | 29 |
__________________
| (a) | During the years ended December 31, 2021 and December 31, 2020, the Company recognized, $16,277 and $49,388, respectively, in amortization expense related to the Trademarks, Product Masters, and Other Intangible Assets.
| (b) | Amount represents the fair value of the ChizComm and ChizComm Beacon Media Customer Relationships with a useful life of 12 years. Amortization expense for the year ended December 31, 2021 was $0.5 million.
| (c) | Amount represents the fair value of the Non-Compete agreements as part of the ChizComm acquisition. The Non-Compete agreements have a useful life of 3 years. Amortization expense for the year ended December 31, 2021 was $18,345.
| (d) | Amount represents the fair value of the Stan Lee Assets acquired through the consolidation of the Stan Lee Universe variable interest entity. The assets have been determined to have a useful life of 70 years. The amortization expense was deemed immaterial during the fourth quarter of 2021.
Pursuant to ASC 350-30, General Intangibles Other than Goodwill, the Company reviews these intangible assets periodically to determine if the value should be retired or impaired due to recent events. During the fourth quarter ended December 31 2021, the Company decided to discontinue the use of the ChizComm trade name acquired as part of the acquisition of ChizComm in February 2021. In connection with the initial accounting for the Acquisition, $3.4 million of the purchase price was allocated to the indefinite-lived trade name. As no future cash flows will be attributed to the impacted trade name, the entire book value was written-off, resulting in a non-cash impairment charge of $3.4 million as of December 31, 2021 recorded in the Company's consolidated statements of operations. No impairment existed as of December 31, 2021 or December 31, 2020 with respect to the company's other identifiable intangible assets. Expected future intangible asset amortization as of December 31, 2021 is as follows (in thousands):
Expected future intangible asset amortization |  |  |  |
Fiscal Year: |  |  |
2022 |  | $ | 542 |
2023 |  |  | 538 |
2024 |  |  | 532 |
2025 |  |  | 532 |
2026 |  |  | 532 |
Thereafter |  |  | 7,057 |
Total |  | $ | 9,733 |

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