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Intangible Assets and Goodwill

12 Months Ended

Dec. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

NOTE 8: INTANGIBLE ASSETS AND GOODWILL

Intangible Assets

Intangible assets consisted of the following at December 31, 2019 and December 31, 2018:

	December 31,				December 31,
	2019				2018
	Gross				Gross
	Carrying		Accumulated		Carrying		Accumulated
	Amount		Amortization		Amount		Amortization
Technology platform	$	4,635		3,147	$	4,635		2,895
Customer relationships		5,330		2,679		5,330		2,477
Trademarks and trade names		1,020		752		1,020		553
		10,985		6,578		10,985		5,925
Accumulated amortization		6,578				5,925
Net book value of amortizable intangible assets	$	4,407			$	5,060

For the year ended December 31, 2018, the gross carrying amount of technology platform, customer relationships, and trademarks and trade names increased $1,770, $2,870, and $340, respectively, from the Allure acquisition completed on November 19, 2018. For the years ended December 31, 2019 and 2018, amortization of intangible assets charged to operations was $654 and $795, respectively, inclusive of amortization expense for the acquired intangible assets for the six-week period from November 19, 2018 to December 31, 2018.

Estimated amortization is as follows:

Year ending December 31,	Estimated Future Amortization
2020	$	616
2021		544
2022		444
2023		444
Thereafter		2,359

Intangible assets include the following and are being amortized over their estimated useful lives as follows:

Acquired Intangible Asset:		Amortization Period: (years)

Technology platform and patents		4 - 7
Trademark		3-5
Customer relationships		15

Goodwill

The following is a rollforward of the Company's goodwill since December 31, 2018:

	Total
Balance as of January 1, 2019	$	18,900
Adjustments due to finalization of purchase price allocation (Note 5)		(729	)
Balance as of December 31, 2019	$	18,171

Goodwill represents the excess of the purchase price over the fair value of net assets acquired. Goodwill is subject to an impairment review at a reporting unit level, on an annual basis as of the end of September of each fiscal year, or when an event occurs or circumstances change that would indicate potential impairment. The Company has only one reporting unit, and therefore the entire goodwill is allocated to that reporting unit.

The Company assessed the carrying value of goodwill at the reporting unit level based on an estimate of the fair value of the respective reporting unit. Fair value of the reporting unit was estimated using a discounted cash flow analyses consisting of various assumptions, including expectations of future cash flows based on projections or forecasts derived from analysis of business prospects and economic or market trends that may occur, specifically, the Company gave significant consideration to actual historic financial results, including revenue growth rates in the preceding three years. Based on the Company's assessment, we determined that the fair value of our reporting unit exceeds its carrying value, and accordingly, the goodwill associated with the reporting unit is not considered to be impaired at September 30, 2019.

The Company recognizes that any changes in our projected 2020 results could potentially have a material impact on our assessment of goodwill impairment. The Company will continue to monitor the actual performance of its operations against expectations and assess indicators of possible impairment. The valuation of goodwill and intangible assets is subject to a high degree of judgment, uncertainty and complexity. Should any indicators of impairment occur in subsequent periods, the Company will be required to perform an analysis in order to determine whether goodwill is impaired.