During 2022, the Company wrote down the value of certain assets as reflected in the table below (in thousands). | | | | | | | | | | Prepaid and other current assets | | | Prepaid licenses and royalties (1) | | $ | 183 | | | Intangible and other assets, net | | | Prepaid licenses and royalties (1) | | 4,514 | | Internally developed technology and software (2) | | 1,271 | | Spectrum intangible assets (3) | | 667 | | Property and equipment, net (2) | | 159,891 | | | Grand Total | | $ | 166,526 | |
(1)While developing its second-generation Duplex technology that supported the Sat-Fi2® device, the Company signed various licensing and royalty agreements necessary for the manufacture and distribution of such products and services. Prepayments associated with these agreements were classified as either current or non-current based on the estimated portion of expense to be recognized over the next twelve months. As of September 7, 2022, approximately $0.2 million and $4.5 million, respectively, was recorded in Prepaid and other current assets and Intangible and other assets, net, on the Company's consolidated balance sheets. On September 7, 2022, these prepaid assets were no longer considered recoverable. The Company recorded a reduction in value of long-lived assets on its consolidated statements of operations for the amount shown in the table above during the third quarter of 2022.
(2)During 2018 and 2019, the Company placed into service second-generation ground Duplex assets (including associated developed technology and software upgrades) capable of providing commercial traffic to support Sat-Fi2®. Additionally, the Company recorded certain costs in construction in progress for spare software associated with the second-generation Duplex assets. On September 7, 2022, the Company re-assessed its asset grouping for long-lived assets and determined that the second-generation Duplex assets are no longer part of the Company's overall satellite and ground network. These second-generation Duplex assets will no longer provide future cash flows to the Company. Note that our first-generation Duplex assets (i.e. handsets and related ground infrastructure) were not impacted. As of September 7, 2022, approximately $1.3 million was recorded in Intangible and other assets, net, and $159.9 million was recorded in Property and equipment, net. The Company recorded a reduction in value of long-lived assets on its consolidated statements of operations for this amount during 2022.
(3)During 2022, the Company wrote off approximately $0.7 million of work in progress associated with its spectrum intangible assets, previously recorded in Intangible and other assets, net, on its consolidated balance sheets. The work in progress was related to efforts to obtain spectrum licensing authority in certain countries around the world; during 2022, the Company determined that it would not continue pursing such authorities in these countries.
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