Transition report pursuant to Rule 13a-10 or 15d-10

Goodwill and Intangible Assets

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Goodwill and Intangible Assets
3 Months Ended
Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Goodwill and Intangible Assets
The changes in the carrying value of goodwill are as follows:

Goodwill balance, September 30, 2021
$ 13,271 
Adjustment(1) 57 
Goodwill balance, December 31, 2021
$ 13,328 
__________
(1) Represents a measurement period adjustment made during the three months ended December 31, 2021. For additional information, see Note 4 to the consolidated financial statements included in the Company’s Annual Report on Form 10-K for the year ended September 30, 2021.

Purchase of Exclusive Rights to Helijet’s Scheduled Passenger Routes in Canada
On November 30, 2021, the Company through its wholly-owned subsidiaries Blade Urban Air Mobility, Inc. and Blade Urban Air Mobility (Canada) Inc. entered into an agreement with Helijet International, Inc. ("Helijet"), a British Columbia-based aviation solutions company and with Pacific Heliport Services Ltd. (“PHS”), a wholly-owned subsidiary of Helijet. Pursuant to this agreement, Blade has acquired exclusive rights to offer scheduled helicopter flights operated by Helijet and to utilize passenger terminals at heliports controlled by PHS, for cash consideration of $12,000. The Agreement has an initial term of five years and will be automatically renewed for successive 2-year periods. Flights revenue generated through those exclusive rights are included in the Short Distance line of business.

This transaction was accounted for as an asset acquisition under ASC 350, Intangibles—Goodwill and Other, per which the Company capitalized the consideration paid of $12,000 and related transaction costs incurred of $357 as an intangible asset. The Company began amortizing the intangible over 5-year useful life, in line with the agreement’s initial term.
The following table presents information about the Company's intangible assets as of:
December 31, 2021 September 30, 2021
Estimated Useful Life
Gross
Carrying
Amount
Accumulated
Amortization

 
Net
Gross
Carrying
Amount

Accumulated
Amortization

Net
Exclusive rights to Helijet’s scheduled passenger routes in Canada
5 years
$ 12,357  $ (206) $ 12,151  $ —  $ —  $ — 
Customer list
5-10 years
11,542  (957) 10,585  11,542  (645) 10,897 
Domain name Indefinite 504  —  504  504  —  504 
Trademarks
6-10 years
1,006  (51) 955  1,006  (9) 997 
Developed technology
3 years
250  (24) 226  250  (4) 246 
Total $ 25,659  $ (1,238) $ 24,421  $ 13,302  $ (658) $ 12,644 
For the three months ended December 31, 2021 and 2020, amortization of its finite-lived intangible assets was $580 and $47, respectively.
As of December 31, 2021, the estimated amortization expense of its finite-lived intangible assets for each of the next five years are as follows:

For the Year Ended September 30,
2022 (nine months) $ 2,978 
2023 3,934 
2024 3,781 
2025 3,698 
2026 3,698