Better Choice Company Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Goodwill and intangible assets

Goodwill and intangible assets

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

Goodwill was $18.6 million as of December 31, 2021 and 2020, respectively. The Company performed a quantitative assessment for its annual impairment test as of October 1, 2021. Under the quantitative approach, the Company makes various estimates and assumptions to determine the estimated fair value of the reporting unit using a combination of a discounted cash flow model and earnings multiples for guideline public companies. As of December 31, 2021 and 2020, there was no accumulated impairment loss and no impairment expense related to goodwill and no indicators, events or changes in circumstances that would indicate goodwill was impaired during the period from October 2, 2021 through December 31, 2021.

Intangible assets

The Company’s intangible assets (in thousands) and related useful lives (in years) are as follows:


				December 31, 2021				December 31, 2020
	Estimated Useful Life	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Accumulated Amortization		Net Carrying Amount
Customer relationships	7	$	7,190	$	(2,088)	$	5,102	$	(1,059)	$	6,131
Trade name	15	7,500		(1,016)		6,484		(516)		6,984
Total intangible assets		$	14,690	$	(3,104)	$	11,586	$	(1,575)	$	13,115

Amortization expense was $1.5 million for the years ended December 31, 2021 and 2020, respectively.

The estimated future amortization of intangible assets over the remaining weighted average useful life of 9.4 years is as follows (in thousands):


2022	$	1,527
2023	1,527
2024	1,527
2025	1,527
2026	1,494
Thereafter	3,984
	$	11,586

There were no indicators or impairment of the intangible assets as of December 31, 2021.