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Asset Impairment Charges
6 Months Ended
Jun. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Asset Impairment Charges
Note 5—Asset Impairment Charges
Asset impairment charges consisted of the following as of the dates indicated (in thousands):
Three Months Ended 
 June 30,
Six Months Ended 
 June 30,
2023202220232022
Property and equipment, net$7,855 $— $7,855 $— 
Intangible assets, net60,236 — 60,236 — 
Total asset impairment charges$68,091 $— $68,091 $— 
During the three months ended June 30, 2023, the Company impaired property and equipment and finite-lived intangible assets of its Elo7 reporting unit in full. The asset impairment charges related to property and equipment primarily related to developed technology and the asset impairment charges related to intangible assets primarily related to trademark and customer relationships. See “Note 1—Basis of Presentation and Summary of Significant Accounting Policies” for more information.
In the event there are adverse changes in the Company’s projected cash flows, changes in key assumptions, including but not limited to an increase in the discount rate, lower revenue growth, lower margin, and a lower terminal growth rate, the Company may be required to record additional non-cash impairment charges to its goodwill and other long-lived assets, including finite-lived intangible assets of reporting units other than Elo7. Such non-cash charges could have a material adverse effect on the Company’s consolidated statement of operations and balance sheet in the reporting period of the charge. The impairment assessments are most sensitive to broader market conditions, including the discount rate and market multiples, and to the Company’s estimated future cash flows.