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GOODWILL AND INTANGIBLE ASSETS, NET
 12 Months Ended
Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL AND INTANGIBLE ASSETS, NET

NOTE 6: GOODWILL AND INTANGIBLE ASSETS, NET

 

A. Composition:

 

   Internal-use Software (*)   Customer Relations   Technology   Goodwill   Total 
Cost:                         
Balance as of January 1, 2023   465    6,234    11,008    17,361    35,068 
Additions   -    -    -    -    - 
Impairment of goodwill   -    -    -    (5,107)   (5,107)
Balance as of December 31, 2023   465    6,234    11,008    12,254    29,961 
                          
Accumulated amortization:                         
Balance as of January 1, 2023   122    741    1,531    -    2,394 
Amortization recognized during the year   154    890    1,835    -    2,879 
Balance as of December 31, 2023   276    1,631    3,366    -    5,273 
                          
Amortized cost:                         
As of December 31, 2023   189    4,603    7,642    12,254    24,688 

 

   Internal-use Software (*)   Customer Relations   Technology   Goodwill   Total 
Cost:                         
Balance as of January 1, 2022   449    7,753    7,757    12,483    28,442 
Adjustments to Ultimate Parent company carrying values (see note 7.B)   -    (1,519)   3,251    4,878    6,610 
Additions   16    -    -    -    16 
Balance as of December 31, 2022   465    6,234    11,008    17,361    35,068 
                          
Accumulated amortization:                         
Balance as of January 1, 2022   -    4,261    3,284    -    7,545 
Adjustments to Ultimate Parent company carrying values (see note 7.B)   -    (4,457)   (3,413)   -    (7,870)
Amortization recognized during the year   122    937    1,660    -    2,719 
Balance as of December 31, 2022   122    741    1,531    -    2,394 
                          
Amortized cost:                         
As of December 31, 2022   343    5,493    9,477    17,361    32,674 

 

(*) During 2020, Gix Media engaged with a subcontractor for the development of an internal-use software (the “Software”). Gix Media capitalized its developments costs until March 1, 2022 and from this date the Software became available for use. Accordingly, Gix Media recognized amortization expenses over the estimated useful life of the Software determined to be three years. For the years ended December 31, 2023 and 2022, Gix Media recorded amortization expenses of $154 and $122.

 

 

VIEWBIX INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

U.S. dollars in thousands (except share data)

 

NOTE 6: GOODWILL AND INTANGIBLE ASSETS, NET (Cont.)

 

B. Impairment of goodwill:

 

As of December 31, 2023, the Company recognized indicators of impairment of the digital content reporting unit. As a result, the Company performed an impairment test which included a quantitative analysis of the fair value of the reporting unit. The fair value was estimated using the income approach, which is based on the present value of the future cash flows attributable to the reporting unit. The Company compared the fair value of the reporting unit to its carrying amount. As the carrying amount exceeded the fair value, the Company recognized an impairment loss of $5,107 which was driven mainly due to a decrease in the cash flow projections.

 

The Company also performed a quantitative impairment test of the search reporting unit. The Company did not recognize an impairment regarding this reporting unit.

 

As of December 31,2022, the Company didn’t record an impairment loss.

 

C. Estimated annual amortization expense for each of the next five years is as follows:

 

     
2024   2,879 
2025   2,760 
2026   2,725 
2027   2,725 
2028   1,194