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Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

4. Goodwill and Other Intangible Assets

The Company’s goodwill balance of $667,000 and $1,004,000 as of December 31, 2018 and 2017, respectively, relates to the excess of costs over the fair value of assets the Company acquired in 2003 related to its Canadian business (the “Reporting Unit”). During the year ended December 31, 2018, the Company determined that because of declines in revenue of the Reporting Unit, the decline in the Company’s stock price and other general market conditions, it was more likely than not that there were indications of impairment. Therefore, the Company performed the step one impairment test of its goodwill. The Company used three methods to determine the fair value of the Reporting Unit: the public company market method, the transaction market method and the income method. Each method was equally weighted to calculate the total fair value, and then the Company compared this fair value to the carrying value of the Reporting Unit, which resulted in the carrying value exceeding the fair value. Accordingly, the Company recognized a goodwill impairment loss of $261,000. There was no goodwill impairment recorded for the year ended December 31, 2017. In addition to the impairment loss recognized, fluctuations in the amount of goodwill shown on the accompanying balance sheets can occur due to changes in the foreign currency exchange rates used when translating NTN Canada’s financial statement from Canadian dollars to US dollars during consolidation. The following table shows the changes in the carrying amount of goodwill for the years ended December 31, 2018 and 2017:

	For the year ended													For the year ended
	December 31, 2018													December 31, 2017
	Gross Carrying Value		Impairment Losses for the period			Accumulated Impairment Losses			Effects of Foreign Currency			Net Carrying Value		Gross Carrying Value		Impairment Losses for the period		Accumulated Impairment Losses		Effects of Foreign Currency		Net Carrying Value
Goodwill	$	1,004,000	$	(261,000	)	$	(261,000	)	$	(76,000	)	$	667,000	$	937,000	$	-	$	-	$	67,000	$	1,004,000

The Company performed its annual review of its other intangible assets as of December 31, 2018 and 2017 and determined that there were no indications of impairment for either of the years ended on those dates.

As of December 31, 2017, all intangible assets were fully amortized with no remaining useful lives. Amortization expense relating to all intangible assets totaled $29,000 for the year ended December 31, 2017. There was no amortization expense for the year ended December 31, 2018.