Inpixon Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Goodwill and Intangibles

Goodwill and Intangibles

6 Months Ended

Jun. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill:

The following table summarizes the changes in the carrying amount of Goodwill for the six months ended June 30, 2022 (in thousands):


Segments	Acquisitions	Balance as of January 1, 2022		Goodwill additions through acquisitions		Valuation Measurement Period Adjustments		Exchange rate fluctuations as of June 30, 2022		Balance as of June 30, 2022
SAVES	Systat	$	695	$	—	$	(695)	$	—	$	—
Indoor Intelligence	GTX	1		—		(1)		—		—
	Nanotron	1,119		—		(1,035)		(84)		—
	Jibestream	480		—		(474)		(6)		—
	CXApp	5,066		—		(5,066)		—		—
	Game Your Game	152		—		(152)		—		—
	IntraNav	159		—		(147)		(12)		—
	Total	$	7,672	$	—	$	(7,570)	(102)		$	—

The Company reviews goodwill for impairment on a reporting unit basis on December 31 of each year and whenever events or changes in circumstances indicate the carrying value of goodwill may not be recoverable. The Company's goodwill balance and other assets with indefinite lives were evaluated for potential goodwill impairment on a reporting unit basis during the period ended June 30, 2022 as certain indications on a qualitative and a quantitative basis were identified that an impairment exists as of the reporting date primarily from a sustained decrease in their stock price.

The Company utilized a mix of both the income and market approaches in determining the fair value of the reporting units. The Company noted that 50% weight was attributed to the income approach and 50% was attributed to the market approach. During the period ended June 30, 2022, the Company recognized approximately $7.6 million of goodwill impairment on Systat, GTX, Nanotron, Jibestream, CXApp, Game Your Game, and IntraNav. As of June 30, 2022, the Company's cumulative impairment charges are approximately $31.0 million with approximately $29.1 million related to the Indoor Intelligence reporting unit, approximately $1.2 million related to the Shoom reporting unit and approximately $0.7 million related to the SAVES reporting unit. As of December 31, 2021, the Company's cumulative goodwill impairment charges were approximately $23.4 million with approximately $22.2 million related to the Indoor Intelligence reporting unit and approximately $1.2 million related to the Shoom reporting unit.

Intangibles assets at June 30, 2022 and December 31, 2021 consisted of the following (in thousands):


	Gross Carrying Amount				Accumulated Amortization Amount				Remaining Weighted Average Useful Life
	June 30,		December 31,		June 30,		December 31,
	2022		2021		2022		2021
IP Agreement	$	158	$	172	$	(70)	$	(54)	2.25
Trade Name/Trademarks	3,585		3,602		(1,031)		(662)		3.80
Webstores & Websites	404		404		(191)		(123)		1.58
Customer Relationships	9,152		9,294		(2,096)		(1,440)		5.42
Developed Technology	21,959		22,175		(4,180)		(3,010)		8.04
Non-compete Agreements	4,255		4,786		(1,819)		(1,666)		1.98
Totals	$	39,513	$	40,433	$	(9,387)	$	(6,955)

Amortization Expense:

Amortization expense for the three and six months ended June 30, 2022 was approximately $1.5 million and $3.0 million, respectively, and for the three and six months ended June 30, 2021 was approximately $1.4 million and $2.0 million, respectively.

Future amortization expense on intangibles assets is anticipated to be as follows (in thousands):


	Amount
December 31, 2022 (for 6 months)	$	3,065
December 31, 2023	5,925
December 31, 2024	4,981
December 31, 2025	4,355
December 31, 2026 and thereafter	11,800
	$	30,126