Annual report pursuant to Section 13 and 15(d)

Intangible Assets, net and Goodwill

Intangible Assets, net and Goodwill
12 Months Ended
Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets, net and Goodwill Intangible Assets, net and Goodwill
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 As of December 31,
2023 2022
Customer Relationships 6.5 $ 17,325  $ 17,325 
Digital Networks 14.3 803  3,537 
Trade Names 67.4 9,970  11,783 
Technology –  293 
Other Intangible Assets (a) –  325 
Intangible Assets, gross 28,098  33,263 
Less Accumulated Amortization (3,794) (2,398)
Foreign Currency Translation Adjustment (1,311) (1,698)
Intangible Assets, net $ 22,993  $ 29,167 
(a)Represents the logo and website intangible assets related to the merger with A Squared that has been fully amortized during the year ended December 31, 2023.
During the years ended December 31, 2023 and 2022, the Company recorded intangible asset amortization expense of $2.1 million and $2.3 million, respectively.
Pursuant to ASC 350-30, General Intangibles Other than Goodwill, the Company reviews its intangible assets periodically to determine if the value should be retired or impaired due to recent events. During the year ended December 31, 2023, due to changes in the Company’s financial projections, the Company reassessed its definite and indefinite-lived intangible asset values to determine whether impairments existed. As a result, the Company recorded a total impairment of $4.4 million as Impairment of Intangible Assets within Operating Expenses in the consolidated statement of operations. The impairment charge consisted of a write-down of definite-lived intangible assets of $2.8 million, due to a decrease in an asset group’s estimated undiscounted cash flows and an impairment of the Frederator Tradename, an indefinite-lived intangible asset, of $1.7 million due to a decrease in its estimated present value of cash flows.
During the year ended December 31, 2022, as a result of the Company’s annual impairment testing, the Company recorded an impairment charge of $4.1 million related to Beacon’s Non-Compete Agreements and Customer Relationships.
Expected future amortization of intangible assets subject to amortization as of December 31, 2023 is as follows (in thousands):
Fiscal Year:
2024 $ 2,100 
2025 2,100 
2026 2,100 
2027 2,100 
2028 2,100 
Thereafter 6,836 
Total $ 17,336 
As of December 31, 2023, $5.7 million of the Company’s intangible assets related to the acquired trade names from the Wow acquisition had indefinite lives and are not subject to amortization.
The following table summarizes the changes in the carrying amount of goodwill remaining in one of its reporting units (in thousands):
Content Production & Distribution
Goodwill as of December 31, 2022 (1) $ 33,474 
Goodwill Impairment (33,534)
Foreign Currency Translation Adjustment 60 
Goodwill as of December 31, 2023 $  
(1) The December 31, 2022 balance is adjusted to include the correction of error as noted in Note 2 within the Restatement of Previously Issued 2022 Financial Statements and Unaudited Interim 2023 Financial Statements section.
As Wow's functional currency is the CAD, goodwill changes each period due to currency exchange differences.
During the year ended December 31, 2022, the Company recorded a goodwill impairment charge of $4.9 million that resulted in a remaining balance of $0 related to the goodwill allocated to its Media Advisory & Advertising Services reporting unit.
During the year ended December 31, 2023, the Company reassessed its remaining goodwill allocated to the Content Production and Distribution reporting unit for impairment. As a result, the Company wrote the total goodwill balance to $0 and recorded an Impairment of Goodwill of $33.5 million within Operating Expenses in its consolidated statement of operations.