Intangible Assets

6 Months Ended

Jun. 30, 2022

Goodwill And Intangible Assets Disclosure [Abstract]

Note 6. Intangible Assets

The components of intangible assets were as follows:

	As of June 30, 2022							As of December 31, 2021
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Finite-lived intangible assets:
Customer relationships ^1,2	$	4,292	$	(1,860	)	$	2,432	$	4,292	$	(1,685	)	$	2,607
Acquired technology ^1,3,4		13,900		(3,658	)		10,242		11,500		(3,275	)		8,225
Acquired trademarks ¹		570		(570	)		—		570		(532	)		38
	$	18,762	$	(6,088	)	$	12,674	$	16,362	$	(5,492	)	$	10,870

Certain intangible assets were established upon PDL BioPharma, Inc.’s acquisition of LENSAR in May 2017. They are being amortized on a straight-line basis over a period of 15 years. The intangible assets for customer relationships are amortized on a straight-line basis or a double declining basis over their estimated useful lives up to 20 years based on the method that better represents the economic benefits to be obtained.

2	LENSAR acquired certain intangible assets for customer relationships from a domestic distributor in an asset acquisition, which are being amortized on a straight-line basis over a period of 10 years.

3	LENSAR acquired certain intangible assets from a medical technology company in an asset acquisition, which are being amortized on a straight-line basis over a period of 15 years.

In 2019, LENSAR acquired certain intellectual property from a third-party. In connection with the agreement, milestone payments of $2,400 were contingent upon regulatory approval and commercialization of the ALLY System. Refer to Note 8, Commitments and Contingencies, for further discussion about the contingent consideration. The intangible assets are being amortized on a straight-line basis over a period of 15 years.

Amortization expense for three months ended June 30, 2022 and 2021 was $287 and $309, respectively, and for the six months ended June 30, 2022 and 2021 was $596 and $622, respectively.

Based on the intangible assets recorded at June 30, 2022, and assuming no subsequent additions to or impairment of the underlying assets, the remaining amortization expense is expected to be as follows:

Fiscal Year	Amount
Remainder of 2022		2,953
2023		1,097
2024		1,085
2025		1,074
2026		1,064
2027		1,055
Thereafter		4,346
Total remaining estimated amortization expense	$	12,674