Blade Air Mobility, 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, 2023

Intangible Assets, Gross (Excluding Goodwill) [Abstract]

The changes in the carrying value of goodwill are as follows:




Goodwill balance, December 31, 2022	$	39,445


Adjustment(1)	100
Foreign currency translation	828
Goodwill balance, December 31, 2023	$	40,373

(1) Represents a measurement period adjustment made during the year ended December 31, 2023. See Note 3 for additional information.

The goodwill pertains to the Blade Europe Acquisition on September 1, 2022 (see Note 3 for additional information) and Trinity Acquisition on September 15, 2021.

The following table presents information about the Company's intangible assets as of:





		December 31, 2023						December 31, 2022
	Estimated Useful Life	Gross Carrying Amount		Accumulated Amortization		Net		Gross Carrying Amount		Accumulated Amortization		Net
Exclusive rights to air transportation services(1)(2)	5-12 years	$	18,946	$	(8,042)	$	10,904	$	38,594	$	(3,473)	$	35,121
Customer list(1)	3-10 years	12,094		(3,653)		8,441		12,077		(2,346)		9,731
Domain name	Indefinite	504		—		504		504		—		504
Trademarks	6-10 years	1,006		(392)		614		1,006		(136)		870
Developed technology	3 years	250		(194)		56		250		(111)		139
Total		$	32,800	$	(12,281)	$	20,519	$	52,431	$	(6,066)	$	46,365

(1) Includes intangible assets associated with the acquisition of Blade Europe. See Note 3 for additional information.

(2) Exclusive rights to air transportation services include exclusive rights to Helijet’s scheduled passenger routes in Canada acquired in 2021.

During the year ended December 31, 2023, the Company recognized an impairment charge for the exclusive rights to air transportation services associated with the acquisition of Blade Europe in the amount of $20,753, which was included in intangible impairment expense within general and administrative expenses in the consolidated statements of operations and is part of the Passenger segment. The impairment was as a result of adjustments made to the near term projections for revenue, expenses and expected EVA introduction, to reflect our experience operating Blade Europe since September 2022 as well as expected delays in the commercialization of EVA.

Fair value was determined using the discounted estimated cash flows to measure the impairment loss for the asset group for which undiscounted future net cash flows were not sufficient to recover the net book value.

The estimated cash flows used to assess the recoverability of our long-lived assets and measure fair value are derived from current business plans. These plans consider price and volume projections. Other important assumptions include flight-hour costs, timing of EVA becoming commercial, EVA cost of operation, and the use of an appropriate discount rate. We believe our estimates and models are similar to what a market participant would use.

The fair value measurement of our long-lived assets is considered a Level 3 measurement because it relies on significant inputs not observable in the market. These inputs include discount rates and determination of long-term estimates of profitability and cash flow values. We used a weighted average discount rate of 12.5% to calculate the fair value of the impaired asset groups in 2023. This rate, along with the long-term estimates of profitability and cash flow values, represents management's best estimate of what a market participant would use.

For the years ended December 31, 2023 and 2022, amortization of its finite-lived intangible assets were $6,036 and $4,895, respectively.

As of December 31, 2023, the estimated amortization expense of its finite-lived intangible assets for each of the next five years are as follows:


For the Year Ended December 31,
2024	$	4,440
2025	4,315
2026	3,994
2027	1,761
2028	1,649