Annual report pursuant to Section 13 and 15(d)

GOODWILL AND INTANGIBLE ASSETS

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GOODWILL AND INTANGIBLE ASSETS
 12 Months Ended
Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL AND INTANGIBLE ASSETS GOODWILL AND INTANGIBLE ASSETS
Goodwill and intangible assets consist of the following as of December 31, 2021 and 2020 (in thousands):
Gross Carrying Amount Accumulated Amortization Impairment Net Carrying Amount Useful Life (Years)
Balance - December 31, 2021:
In-process research and development $ 3,730  $ —  $ (2,245) $ 1,485  —
Trade names 100  (100) —  —  5
Non-compete agreements 77  (77) —  —  5
Intangible assets $ 3,907  $ (177) $ —  $ 1,485 
Goodwill $ 2,788  $ —  $ (2,788) $ —  —
Balance - December 31, 2020:
In-process research and development $ 3,730  $ —  $ —  $ 3,730  —
Trade names 100  (100) —  —  5
Non-compete agreements 77  (77) —  —  5
Intangible assets $ 3,907  $ (177) $ —  $ 3,730 
Goodwill $ 2,788  $ —  $ —  $ 2,788  —
The Company performs a Step 0 goodwill impairment analysis annually following the steps laid out in ASC 350-20-35-3C. The Company's annual impairment analysis includes a qualitative assessment to determine if it is necessary to perform the quantitative impairment test. In performing a qualitative assessment, the Company reviewed events and circumstances that could affect the significant inputs used to determine if the fair value is less than the carrying value of goodwill. The Company performed a Step 0 goodwill impairment analysis and determined that a triggering event had occurred to necessitate performing the quantitative impairment test. After performing the quantitative impairment test in accordance with ASC 350-20-35-3C, the Company determined that goodwill was impaired by $2.8 million. As a result, the Company recorded this impairment to reduce total goodwill on its balance sheet as of December 31, 2021 and recorded the corresponding impairment expense, which is included in selling, general and administrative expense in the Company's statements of operations for the year ended December 31, 2021.
The Company evaluated, on the basis of the weight of the evidence, the significance of all identified events and circumstances that could affect the significant inputs used to determine the fair value of the IPR&D for determining whether it is more likely than not that the IPR&D asset is impaired. After assessing the totality of events and circumstances and their potential effect on significant inputs to the fair value determination, the Company determined that it is more likely than not that the IPR&D asset is impaired. As such, the Company has estimated the fair value of the IPR&D and performed the quantitative impairment test. Based on the quantitative impairment test, the Company determined that its IPR&D is impaired by $2.2 million. As a result, the Company recorded this impairment to reduce its intangible assets on its balance sheet as of December 31, 2021 and recorded the corresponding impairment expense, which is included in selling, general and administrative expense in the Company's statements of operations for the year ended December 31, 2021.
The Company did not incur costs to renew or extend the term of acquired intangible assets for the years ended December 31, 2021 and 2020. Amortization expense for intangible assets was $36 thousand for the year ended December 31, 2020. There was no amortization expense for the year ended December 31, 2021 and there will be no future amortization expense.