Annual report pursuant to Section 13 and 15(d)

Goodwill

v3.21.1
Goodwill
12 Months Ended
Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill

Note 10 — Goodwill

 

The changes in the carrying amount of goodwill for the year ended December 31, 2020 consisted of the following:

 

    Total  
Balance, January 1, 2019   $ 9,736,510  
Acquisition of Uber Mom     98,613  
Impairment     (4,443,000 )
Balance, December 31, 2019     5,392,123  
Acquisition of TBD Safety, LLC     591,729  
Balance, December 31, 2020   $ 5,983,852  

  

The Company recorded an impairment charge of $0 and $4,443,000 for the years ended December 31, 2020 and 2019, respectively, related to our annual impairment assessment. The impairment was a result of decreased profitability as compared to anticipated profitability in our businesses acquired in 2018. The Company utilized the simplified test for goodwill impairment. The amount recognized for impairment is equal to the difference between the carrying value and the asset’s fair value. The valuation methods used in the quantitative fair value assessment was a discounted cash flow method and required management to make certain assumptions and estimates regarding certain industry trends and future profitability of our reporting units.