Quarterly report pursuant to Section 13 or 15(d)

Note 7 - Goodwill & Intangible Assets

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Note 7 - Goodwill & Intangible Assets
6 Months Ended
Jun. 30, 2021
Notes to Financial Statements  
Goodwill and Intangible Assets Disclosure [Text Block]

7.

Goodwill & Intangible Assets

 

The changes in the carrying value of goodwill by segment for the six months ended June 30, 2021 are as follows (in thousands):

 

   

DME Services (a)

 

Balance as of December 31, 2020

  $ -  

Goodwill acquired

    3,711  

Balance as of June 30, 2021

  $ 3,711  

 

(a) No goodwill allocated to the ITS segment

 

The carrying amount and accumulated amortization of intangible assets consisted of the following (in thousands):

 

   

June 30, 2021

   

December 31, 2020

 
   

Gross

Assets

   

Accumulated

Amortization

   

Net

   

Gross

Assets

   

Accumulated

Amortization

   

Net

 

Nonamortizable intangible assets

                                               

Trade names

  $ 2,000     $ -     $ 2,000     $ 2,000     $ -     $ 2,000  

Amortizable intangible assets:

                                               

Trade names

    23       (23 )     -       23       (23 )     -  

Physician and customer relationships

    38,834       (30,137 )     8,697       36,534       (28,924 )     7,610  

Non-competition agreements

    472       (20 )     452       -       -       -  

Unpatented technology

    943       (56 )     887       -       -       -  

Software

    11,530       (10,513 )     1,017       11,230       (9,663 )     1,567  
                                                 

Total nonamortizable and amortizable intangible assets

  $ 53,802     $ (40,749 )   $ 13,053     $ 49,787     $ (38,610 )   $ 11,177  

 

Amortization expense for the three and six months ended June 30, 2021 was $1.1 million and $2.1 million, respectively, with equivalent amounts for the same prior year periods, respectively. This expense was recorded in “amortization of intangibles expenses” for each period. Expected remaining annual amortization expense for the next five years for intangible assets recorded as of June 30, 2021 is as follows (in thousands):

 

                                           

2026 and

         
   

2021

   

2022

   

2023

   

2024

   

2025

   

thereafter

   

Total

 
                                                         

Amortization expense

  $ 2,123     $ 2,494     $ 990     $ 990     $ 810     $ 3,646     $ 11,053