Quarterly report pursuant to Section 13 or 15(d)

Goodwill and Intangible Assets, Net

v3.22.1
Goodwill and Intangible Assets, Net
3 Months Ended
Mar. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets, Net

Note 10: Goodwill and Intangible Assets, Net

 

Goodwill

 

In 2013, the Company recognized $10.4 million in goodwill, as a result of the merger with A Squared. During the first quarter of 2021, the Company recognized $9.6 million in goodwill, as a result of the acquisition of The Beacon Media Group (formerly ChizComm). As of December 31, 2021, the goodwill allocated to the Media Advisory and Advertising Services reportable segment was determined to be impaired and the Company recorded an impairment charge of $4.8 million, accordingly.

 

As a result of the Ameba Acquisition during the first quarter of 2022, the Company recorded goodwill of $0.7 million as determined to be the amount in excess of the fair value of the assets acquired and liabilities assumed in the acquisition. The goodwill recorded for the Ameba Acquisition was allocated to the Content Production and Distribution reportable segment.

 

As Beacon Communications and Ameba are incorporated as Canadian companies with CAD being their functional currency, goodwill will change each period due to currency exchange differences.

 

The Company will perform its annual review of goodwill during the fourth quarter. There were no events or changes in circumstances that would indicate an impairment in goodwill during the three months ended March 31, 2022.

 

The following table summarizes the changes in the carrying amount of goodwill by reportable segment (in thousands):

                       
    Content Production & Distribution     Media Advisory & Advertising Services     Total  
Goodwill as of December 31, 2021   $ 10,366     $ 4,861     $ 15,227  
Acquisition of Ameba     673             673  
Foreign Currency Translation Adjustment           11       11  
Goodwill as of March 31, 2022   $ 11,039     $ 4,872     $ 15,911  

 

Intangible Assets, Net

 

The Company had the following intangible assets (in thousands) with their weighted average remaining amortization period (in years):

 

Intangible Assets, Net

                       
    Weighted Average Remaining Amortization Period    

March 31,

2022

   

December 31,

2021

 
Customer Relationships     11     $ 6,144     $ 6,120  
Digital Networks     18       2,804        
Trade names     70       4,023       4,000  
Technology     3       300        
Non-Compete     2       60       60  
Other Intangible Assets (a)     1.5       301       301  
Intangible Assets, Gross             13,632       10,481  
                         
Foreign Currency Translation Adjustment             28       24  
Less Accumulated Amortization             (997 )     (772 )
Intangible Assets, Net           $ 12,663     $ 9,733  

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  (a) Represents the remaining unamortized logo and website intangible assets related to the merger with A Squared.

 

During the three months ended March 31, 2022 and 2021, the Company recorded amortization expense of $225,093 and $91,521, respectively.

 

Pursuant to ASC 350-30, General Intangibles Other than Goodwill, the Company reviews these intangible assets periodically to determine if the value should be retired or impaired due to recent events. There were no changes in events or circumstances during the three months ended March 31, 2022 that would indicate an impairment of the intangible assets.

 

Expected future intangible asset amortization as of March 31, 2022 is as follows (in thousands):

       
Fiscal Year:      
2022   $ 665  
2023     854  
2024     828  
2025     731  
2026     727  
Thereafter     8,858  
Total   $ 12,663