XML 28 R17.htm IDEA: XBRL DOCUMENT v3.22.1
Goodwill and Intangible Assets, Net
 3 Months Ended
Mar. 31, 2022
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, as a result of the merger with A Squared. During the first quarter of 2021, the Company recognized $9.6 million in goodwill, as a result of the acquisition of The Beacon Media Group (formerly ChizComm). As of December 31, 2021, the goodwill allocated to the Media Advisory and Advertising Services reportable segment was determined to be impaired and the Company recorded an impairment charge of $4.8 million, accordingly.

 

As a result of the Ameba Acquisition during the first quarter of 2022, the Company recorded goodwill of $0.7 million as determined to be the amount in excess of the fair value of the assets acquired and liabilities assumed in the acquisition. The goodwill recorded for the Ameba Acquisition was allocated to the Content Production and Distribution reportable segment.

 

As Beacon Communications and Ameba are incorporated as Canadian companies with CAD being their functional currency, goodwill will change each period due to currency exchange differences.

 

The Company will perform its annual review of goodwill during the fourth quarter. There were no events or changes in circumstances that would indicate an impairment in goodwill during the three months ended March 31, 2022.

 

The following table summarizes the changes in the carrying amount of goodwill by reportable segment (in thousands):

               
   Content Production & Distribution   Media Advisory & Advertising Services   Total 
Goodwill as of December 31, 2021  $10,366   $4,861   $15,227 
Acquisition of Ameba   673    –    673 
Foreign Currency Translation Adjustment   –    11    11 
Goodwill as of March 31, 2022  $11,039   $4,872   $15,911 

 

Intangible Assets, Net

 

The Company had the following intangible assets (in thousands) with their weighted average remaining amortization period (in years):

 

Intangible Assets, Net

               
   Weighted Average Remaining Amortization Period  

March 31,

2022

  

December 31,

2021

 
Customer Relationships   11   $6,144   $6,120 
Digital Networks   18    2,804    – 
Trade names   70    4,023    4,000 
Technology   3    300    – 
Non-Compete   2    60    60 
Other Intangible Assets (a)   1.5    301    301 
Intangible Assets, Gross        13,632    10,481 
                
Foreign Currency Translation Adjustment        28    24 
Less Accumulated Amortization        (997)   (772)
Intangible Assets, Net       $12,663   $9,733 

__________________ 

  (a) Represents the remaining unamortized logo and website intangible assets related to the merger with A Squared.

 

During the three months ended March 31, 2022 and 2021, the Company recorded amortization expense of $225,093 and $91,521, respectively.

 

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. There were no changes in events or circumstances during the three months ended March 31, 2022 that would indicate an impairment of the intangible assets.

 

Expected future intangible asset amortization as of March 31, 2022 is as follows (in thousands):

     
Fiscal Year:    
2022  $665 
2023   854 
2024   828 
2025   731 
2026   727 
Thereafter   8,858 
Total  $12,663