Business Combinations, Goodwill and Intangible Assets

Goodwill impairment

There was a decrease in goodwill of

$12,724

during

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.

There were

such impairment charges during the year ended

December 31, 2018.

Intangible Assets

Intangible assets as of

December 31, 2018,

and

2017

consisted of the following:

	Estimated useful lives				As of December 31,
	(in years)				201 8			201 7
Tradename		5	to	7	$	555		$	555
Patents and technological know-how			10			13,377			8,578
Proprietary software		3	to	15		2,981			2,981
Other		3	to	5		323			323
Total intangible assets, gross						17,236			12,437
Accumulated amortization						(6,987	)		(5,894	)
Total intangible assets, net					$	10,249		$	6,543

Intangible assets includes capitalized legal expenses, net of amortization of

$6,627

million related to our defense of patents from infringement by our competitors. Legal expenses have been capitalized upon satisfaction of

two

conditions: (a) a determination being made that a successful defense of this litigation is probable, and (b) that the monetary benefits arising out of such successful defense will be in excess of the costs for the defense. Please refer to

Note

- Commitments and Contingencies

for additional information.

During the years ended

December 31, 2018

and

2017,

amortization of these intangible assets were

$1,093

and

$932

respectively.

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

Years ending December 31,
2019	$	1,226
2020		1,048
2021		1,048
2022		1,048
2023		866
Thereafter		5,013
Total	$	10,249