NOTE F - INTANGIBLE ASSETS

In accordance  with ASC 350, “Intangibles — Goodwill and Other”,  goodwill and other intangible assets deemed to have indefinite lives are not amortized,  but are subject to annual impairment tests. We review and evaluate our goodwill and indefinite life intangible assets for potential  impairment at a minimum annually or more frequently if circumstances indicate that impairment is possible.

We determined  the fair value of assets acquired and liabilities assumed using a variety of methods. An income approach based on discounted  cash flows was used to determine the values of our trademarks, certifications, customer relationships and FAA certificates. The assumptions we used to estimate the fair value of our reporting  units are based on historical performance, as well as forecasts used in our current business plan and require considerable  management judgment.

The Company’s goodwill and intangible assets as defined by ASC 350 is related to our subsidiaries, AerSale Component Solutions (“ACS”), Avborne, and the newly acquired ACT, which are included in the TechOps segment, as well as Qwest, which is included under the Asset Management Solutions segment. Goodwill and other intangibles as of December 31, 2020 and December 31, 2019 are:

 

 

The Company performed a quantitative impairment analysis as of July 1, 2020 on the indefinite lived intangible assets and concluded there was no impairments.

 

As a result of the COVID-19 pandemic and its impact on the aviation industry, AerSale performed a qualitative impairment analysis as of June 30, 2020 on the goodwill for the Asset Management Solutions and TechOps segment and concluded there was no impairment. Additionally, the Company performed a quantitative impairment analysis as of October 1, 2020 and concluded there was no impairment for the year ended December 31, 2020.

Intangible  assets with definite useful lives are amortized  on a straight-line  basis over their estimated useful lives. Intangible  assets with definite lives as of December 31, 2020 and 2019 are as follows:

 

 

Amortization expense was as follows:

 

 

The estimated aggregate amount    of amortization expense for intangible assets in each fiscal year from 2021 through  2025 is $2,100,000. Accumulated amortization amounted to $2,967,000 and $859,000 as of December 31, 2020 and December 31, 2019, respectively. Goodwill activity for the years ended December 31, 2020 and 2019 consisted of the following:

 

 

Other intangible assets are reviewed at least annually or more frequently if any event or change in circumstance indicates that an impairment may have occurred.