GOODWILL AND INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2023

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS

4. GOODWILL AND INTANGIBLE ASSETS

The Company completed the acquisition of Lantern Machinery Analytics, Inc. in the year ended December 31, 2023. Refer to Note 14 for additional information related to the goodwill and intangible assets added from this acquisition.

As of December 31, 2023 and 2022, the carrying amount of goodwill was $15.0 million and $14.1 million, respectively. The following table summarizes goodwill transaction for the years ended December 31, 2023, 2022 and 2021 (in thousands):

	Year Ended December 31,
	2023		2022		2021
Balance at beginning of year	$	14,123	$	14,123	$	15,774
Addition		895		—		—
Measurement period acquisition adjustment		—		—		(1,651)
Foreign currency translation adjustment		11		—		—
Balance at end of year	$	15,029	$	14,123	$	14,123

Intangible assets balance was $15.6 million and $18.1 million as of December 31, 2023 and 2022, respectively.

Intangible assets as of December 31, 2023 and 2022, consist of the following (in thousands):

		December 31, 2023						December 31, 2022
	Amortization	Gross				Net		Gross				Net
	Period	Carrying		Accumulated		Carrying		Carrying		Accumulated		Carrying
	(Years)	Amount		Amortization		Amount		Amount		Amortization		Amount
Acquired identifiable intangibles:
Customer relationships	1-10	$	9,508	$	(7,335)	$	2,173	$	9,407	$	(6,684)	$	2,723
Developed technology	4-9		34,650		(22,094)		12,556		33,635		(19,647)		13,988
Tradename and trademarks	2-10		1,598		(1,025)		573		1,598		(918)		680
Patent	6-10		2,100		(1,782)		318		2,100		(1,696)		404
Noncompetition agreements	3		848		(848)		—		848		(588)		260
Total		$	48,704	$	(33,084)	$	15,620	$	47,588	$	(29,533)	$	18,055

The weighted average amortization period for acquired identifiable intangible assets was 5.3 years as of December 31, 2023. The following table summarizes intangible assets amortization expense in the Consolidated Statements of Comprehensive Income (Loss) (in thousands):

	Year Ended December 31,
	2023		2022		2021
Amortization of acquired technology included under costs of revenues	$	2,266	$	2,214	$	2,079
Amortization of acquired intangible assets presented separately under costs and expenses		1,285		1,270		1,255
Total amortization of acquired intangible assets	$	3,551	$	3,484	$	3,334

The Company expects annual amortization of acquired identifiable intangible assets to be as follows (in thousands):

Year Ending December 31,	Amount
2024	$	3,237
2025		3,072
2026		2,903
2027		2,750
2028		2,445
2029 and thereafter		1,213
Total future amortization expense	$	15,620

There were no impairment charges for goodwill and intangible assets for the years ended December 31, 2023, 2022 and 2021.