Business Combinations, Goodwill and Intangible Assets

Goodwill impairment

There was a decrease in goodwill during the

twelve

months ended from

$12,724

as of

December 31, 2016

as of

December 31, 2017

due to the impairment of goodwill. During the

third

quarter ended

September 30, 2017,

there was a decrease in the Company’s market capitalization which was determined to be a triggering event for potential goodwill impairment. Accordingly, the Company performed a goodwill impairment analysis. The Company utilized the market capitalization to estimate the fair value. Our total stockholders’ equity exceeded the estimated fair value. The failure of step

one

of the goodwill impairment test triggered a step

two

impairment test. As a result of step

two

of the impairment test, the Company determined the implied fair value of goodwill and concluded that the carrying value of goodwill exceeded its implied fair value as of

September 30, 2017.

Accordingly, an impairment charge of

$12,724,

which represents a full impairment charge, was recognized in the

third

quarter ended

September 30, 2017.

Intangible Assets

Intangible assets as of

December 31, 2017,

and

2016

consisted of the following:

	Estimated useful lives				As of December 31,
	(in years)				2017			2016
Tradename		5	to	7	$	555		$	555
Patents and technological know-how			10			8,578			6,010
Proprietary software		3	to	15		2,981			4,341
Other		3	to	5		323			324
Total intangible assets, gross						12,437			11,230
Accumulated amortization						(5,894	)		(5,553	)
Total intangible assets, net					$	6,543		$	5,677

During the years ended

December 31, 2017,

2016

and

2015,

amortization of these intangible assets were

$932,

$1,121,

and $

1,258

respectively.

The estimated future amortization expense of intangible assets is as follows:

Years ending December 31,
2018	$	935
2019		831
2020		652
2021		652
2022		652
Thereafter		2,821
Total	$	6,543