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Goodwill and Intangible Assets
 9 Months Ended
Sep. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets GOODWILL AND INTANGIBLE ASSETS
Goodwill
Goodwill is recorded when the purchase price of an acquisition exceeds the fair value of the net tangible and identified intangible assets acquired.
Goodwill is tested annually for impairment at the reporting unit level during the fourth quarter or upon the occurrence of certain events or substantive changes in circumstances. The Company identified an indicator of goodwill impairment in the three and nine months ended September 30, 2023. The balance of the Company’s goodwill was $40.2 million as of September 30, 2023 and $37.5 million as of December 31, 2022.
Goodwill Impairment
The Company assessed the current and future economic outlook as of September 30, 2023 for its single reporting unit and the Company experienced a sustained decrease in its share price, an indicator for impairment of goodwill. The evaluation began with a qualitative assessment to determine if it was more likely than not that the fair value of the reporting unit was less than its carrying value. The qualitative assessment did not indicate that it was more likely than not that the fair value exceeded the carrying value, which led to a quantitative assessment.
The Company estimated the fair value of its reporting unit using a combination of the income and market approaches. In performing the goodwill impairment test, the Company used an exit multiple given the development phase of the Company and a discount rate of 16.4% in its estimation of fair value. The evaluation performed resulted in no impairment as of September 30, 2023.
Intangible Assets
The following table presents details of the Company’s intangible assets as of September 30, 2023 ($ in thousands):
September 30, 2023
Gross Carrying AmountAccumulated AmortizationForeign Currency TranslationNet Carrying AmountWeighted Average Remaining Useful Life
(In Years)
Intangible assets with finite lives:
Acquired and developed technology$37,367 $(17,529)$(2,560)$17,278 7.4
Customer relationships25,718 (8,663)(2,334)14,721 9.5
Commercialization rights11,578 (4,180)— 7,398 5.8
Trademarks and tradenames5,220 (1,617)(356)3,247 9.6
Total intangible assets with finite lives79,883 (31,989)(5,250)42,644 
Intangible assets with indefinite lives:
Acquired in-process technology1,250 — — 1,250 
Favorable license agreement
2,561 — — 2,561 
Total intangible assets with indefinite lives
3,811 — — 3,811 
Total intangible assets$83,694 $(31,989)$(5,250)$46,455 
The following table presents details of the Company’s intangible assets as of December 31, 2022 ($ in thousands):
December 31, 2022
Gross Carrying AmountAccumulated AmortizationForeign Currency TranslationNet Carrying AmountWeighted Average Remaining Useful Life
(In Years)
Intangible assets with finite lives:
Acquired and developed technology$35,747 $(15,138)$(2,369)$18,240 7.5
Customer relationships21,898 (7,459)(2,104)12,335 9.0
Commercialization rights11,579 (3,233)— 8,346 6.6
Trademarks and tradenames4,540 (1,345)(315)2,880 8.5
Total intangible assets with finite lives73,764 (27,175)(4,788)41,801 
Acquired in-process technology1,250 — — 1,250 
Total intangible assets$75,014 $(27,175)$(4,788)$43,051 

Acquisition of Intangible Assets
In January 2023 and July 2023, the Company acquired the intangible assets of HLA Data Systems and MediGO, respectively. The intangible assets are included in Acquired and developed technology, Customer relationships and Trademarks and tradenames as of September 30, 2023.
Amortization of Intangible Assets
Intangible assets are carried at cost less accumulated amortization. Amortization expenses are recorded to cost of testing services, cost of product, cost of patient and digital solutions, and sales and marketing expenses in the condensed consolidated statements of operations.
The following table summarizes the Company’s amortization expense of intangible assets (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2023202220232022
Cost of testing services$329 $329 $987 $987 
Cost of product408 415 1,242 1,305 
Cost of patient and digital solutions265 237 768 709 
Sales and marketing
616 554 1,817 1,702 
Total$1,618 $1,535 $4,814 $4,703 
The following table summarizes the Company’s estimated future amortization expense of intangible assets with finite lives as of September 30, 2023 (in thousands):
Years Ending December 31,Cost of Testing ServicesCost of ProductCost of Patient and Digital SolutionsSales and MarketingTotal
Remainder of 2023$329 $405 $271 $634 $1,639 
20241,316 1,621 850 2,494 6,281 
20251,316 1,621 681 2,494 6,112 
20261,316 732 681 2,492 5,221 
20271,316 732 681 2,478 5,207 
Thereafter2,825 3,260 2,142 9,957 18,184 
Total future amortization expense$8,418 $8,371 $5,306 $20,549 $42,644