Opendoor Technologies Inc. - POS AM filing on 2021-03-12

GOODWILL AND INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2020

11.GOODWILL AND INTANGIBLE ASSETS

For the year ended December 31, 2019, the carrying amount of goodwill increased by $21.5 million due to the acquisition of OSN (See “Note 2 — Business Combination”). There were no additions to goodwill for the twelve months ended December 31, 2020. No impairment of goodwill was identified for the years ended December 31, 2020 and 2019.

Intangible assets subject to amortization consisted of the follow as of December 31, 2020 and 2019, respectively(in thousands, except years):

As of December 31, 2020


	Gross				Net		Weighted Average
	Carrying		Accumulated		Carrying		Useful Life
	Amount		Amortization		Amount		(Years)
Developed technology	$	2,921	$	(2,921)	$	—	0
Customer relationships		7,400		(2,622)		4,778	3.7
Trademarks		5,400		(1,652)		3,748	3.7
Non-competition agreements		100		(100)		—	0
Intangible assets – net	$	15,821	$	(7,295)	$	8,526

As of December 31, 2019


	Gross				Net		Weighted Average
	Carrying		Accumulated		Carrying		Useful Life
	Amount		Amortization		Amount		(Years)
Developed technology	$	2,921	$	(1,879)	$	1,042	0.7
Customer relationships		7,400		(990)		6,410	4.2
Trademarks		5,400		(631)		4,769	4.7
Non-competition agreements		100		(65)		35	0.7
Intangible assets – net	$	15,821	$	(3,565)	$	12,256

The Company also has domain name intangible assets, which are not subject to amortization, with a carrying amount of $0.2 million as of both December 31, 2020 and 2019, respectively.

Amortization expense for intangible assets was $3.7 million, $2.9 million, and $0.6 million for the years ended December 31, 2020, 2019 and 2018, respectively.

As of December 31, 2020, expected amortization of intangible assets is as follows:


Fiscal Years	(In thousands)
2021	$	2,320
2022		2,320
2023		2,320
2024		1,566
Total	$	8,526