SeaChange International, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Goodwill and Intangible Assets

Goodwill and Intangible Assets

6 Months Ended

Jul. 31, 2021

Goodwill And Intangible Assets Disclosure [Abstract]

5.	Goodwill and Intangible Assets

Goodwill represents the difference between the purchase price and the estimated fair value of identifiable assets acquired and liabilities assumed. We are required to perform an impairment test annually, or more often if we identify certain events or circumstances that would more likely than not reduce the estimated fair value of the goodwill below its carrying amount. There were no impairment charges recorded in fiscal 2021 or the first half of fiscal 2022.

The following table represents the changes in goodwill since January 31, 2021:

	Goodwill
	(Amounts in thousands)
Balance as of January 31, 2021	$	10,577
Translation adjustment		(184	)
Balance as of July 31, 2021	$	10,393

Intangible assets, net, consisted of the following for the periods presented:

	As of July 31, 2021
	Gross		Accumulated Amortization			Cumulative Translation Adjustment		Net
	(Amounts in thousands)
Finite-lived intangible assets:
Acquired customer contracts	$	2,205	$	(1,861	)	$	40	$	384
Acquired existing technology		1,364		(1,154	)		28		238
Total finite-lived intangible assets	$	3,569	$	(3,015	)	$	68	$	622

	As of January 31, 2021
	Gross		Accumulated Amortization			Cumulative Translation Adjustment		Net
	(Amounts in thousands)
Finite-lived intangible assets:
Acquired customer contracts	$	2,205	$	(1,469	)	$	49	$	785
Acquired existing technology		1,364		(910	)		33		487
Total finite-lived intangible assets	$	3,569	$	(2,379	)	$	82	$	1,272

We recognized amortization expense of intangible assets in operating expense categories on the consolidated statements of operations and comprehensive loss as follows:

	For the Three Months Ended July 31,					For the Six Months Ended July 31,
	2021		2020			2021		2020
	(Amounts in thousands)					(Amounts in thousands)
Selling and marketing	$	195	$	366		$	390	$	366
Research and development		121		(67	)		242		217
	$	316	$	299		$	632	$	583

Future estimated amortization expense of intangibles as of July 31, 2021 was $0.6 million to be recognized in fiscal 2022.