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Goodwill and Intangible Assets | 3 Months Ended
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Mar. 31, 2022
Goodwill And Intangible Assets Disclosure [Abstract] |
Goodwill and intangible assets | Note 6. Goodwill and Intangible Assets When the Company acquired the trade assets of Motorola Solutions, Inc.’s wireless point-to-point and point-to-multi-point businesses in 2011, the transaction generated goodwill and certain intangible assets. The goodwill associated with this transaction was recorded by Cambium Networks Corporation and allocated to Cambium Networks, Ltd. and Cambium Networks, Inc. using a revenue and asset allocation method. Although goodwill has been allocated to two operating subsidiaries, the Company operates as one operating segment and one reporting unit and therefore, goodwill is reported, and impairment testing performed, at the Cambium Networks Corporation consolidated level. There was no change in the carrying amount of goodwill during the three-month period ended March 31, 2022 (unaudited). The Company tests goodwill and intangible assets for impairment annually on December 31 and more frequently if impairment indicators exist. Accordingly, the Company performs quarterly qualitative assessments of significant events and circumstances such as a reporting unit’s historical and current results, assumptions regarding future performance, strategic initiatives and overall economic factors, including the impact of the current global outbreak of the coronavirus (or COVID-19) and macro-economic developments, to determine the existence of potential indicators of impairment and assess if it is more likely than not that the fair value of the reporting unit or intangible asset is less than their carrying value. If indicators of impairment are identified, a quantitative impairment test is performed. Qualitative assessments for the quarter did not indicate the existence of impairment indicators. Based on the operating results for the three-month period ended March 31, 2022 and other considerations, the Company believes that it is more likely than not that the enterprise value for its one reporting unit and the fair value of intangibles is still greater than their carrying values. Accordingly, no goodwill impairment indicators were present at March 31, 2022 that would necessitate an interim impairment assessment. The useful life, gross carrying value, accumulated amortization, and net balance for each major class of definite-lived intangible assets at each balance sheet date were as follows (in thousands):
|  |  |  | December 31, 2021 |  |  | March 31, 2022 |
|  | Useful Life |  | Gross carrying amount |  |  | Accumulated amortization |  |  | Net balance |  |  | Gross carrying amount |  |  | Accumulated amortization |  |  | Net balance |
|  |  |  |  |  |  |  |  |  |  |  |  | (unaudited) |  |  | (unaudited) |  |  | (unaudited) |
Unpatented technology |  | 3 - 7 years |  | $ | 14,660 |  |  | $ | (14,555 | ) |  | $ | 105 |  |  | $ | 14,660 |  |  | $ | (14,600 | ) |  | $ | 60 |
Customer relationships |  | 5 - 18 years |  |  | 19,300 |  |  |  | (8,628 | ) |  |  | 10,672 |  |  |  | 19,300 |  |  |  | (9,003 | ) |  |  | 10,297 |
Patents |  | 7 years |  |  | 11,300 |  |  |  | (11,300 | ) |  |  | — |  |  |  | 11,300 |  |  |  | (11,300 | ) |  |  | — |
Trademarks |  | 10 years |  |  | 5,270 |  |  |  | (5,270 | ) |  |  | — |  |  |  | 5,270 |  |  |  | (5,270 | ) |  |  | — |
Total |  |  |  | $ | 50,530 |  |  | $ | (39,753 | ) |  | $ | 10,777 |  |  | $ | 50,530 |  |  | $ | (40,173 | ) |  | $ | 10,357 |
Intangible assets are amortized over their expected useful life and none are expected to have a significant residual value at the end of their useful life. Intangible assets amortization expense was $0.6 million and $0.4 million for the three-month periods ended March 31, 2021 and 2022, respectively. Based on capitalized intangible assets as of March 31, 2022, estimated amortization expense amounts in future fiscal years are as follows (unaudited and in thousands):
Year ending December 31, |  | Amortization |
2022 (April - December) |  | $ | 1,183 |
2023 |  |  | 1,498 |
2024 |  |  | 1,498 |
2025 |  |  | 1,498 |
2026 |  |  | 1,498 |
Thereafter |  |  | 3,182 |
Total amortization |  | $ | 10,357 |

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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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