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Goodwill and Intangible Assets, Net
 12 Months Ended
Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets, Net Goodwill and Intangible Assets, Net
Goodwill
Historically, the Company had concluded that it operated as a single operating segment and single reporting unit. For the year ended December 31, 2022, as a result of changes in the management of the Company’s business, management concluded that the Company operates as three operating segments, including two distinct reportable segments: Wound & Surgical and Regenerative Medicine. See Note 13, Segment Information, for a description of the Company’s operating segments. Management further concluded that these two reportable segments reflected its reporting units for goodwill impairment testing purposes.
The Company allocated $20.0 million of consolidated goodwill, which was entirely allocated to its previous reporting unit, to each of its Wound & Surgical and Regenerative Medicine segments based on their relative fair values from a market participant standpoint. The result was $19.4 million and $0.5 million allocated to Wound & Surgical and Regenerative Medicine, respectively. A third reporting unit associated with the Company’s third operating segment was deemed immaterial and no goodwill was assigned to it.
The Company performed goodwill impairment tests using the Company’s single reporting unit and the new reporting units on September 30, 2022. In all cases, the Company concluded that the estimated fair values of each reporting unit exceeded its respective carrying values. Therefore, the Company did not record impairment for goodwill on September 30, 2022.
For the annual impairment test performed October 1, 2022, the Company performed a quantitative assessment to determine the existence of impairment. The quantitative assessment concluded that it was more likely than not that goodwill was not impaired. No impairment was recorded for the year ended December 31, 2022.
For the annual impairment test performed on October 1, 2021, the Company performed a qualitative assessment to determine the existence of impairment. The qualitative assessment concluded that it was more likely than not that goodwill was not impaired. The Company did not proceed to the quantitative assessment, and no impairment was recorded for the year ended December 31, 2021.
The following table indicates the changes in the carrying amount of goodwill for 2022 and 2021 (in thousands):
Previous Reporting UnitWound & SurgicalRegenerative MedicineTotal Company
Balance as of January 1, 2021$19,976 $— $— $19,976 
Activity— — — — 
Balance as of December 31, 2021$19,976 $— $— $19,976 
Reallocation(19,976)19,441 535 — 
Balance as of December 31, 2022$— $19,441 $535 $19,976 
Intangible Assets, Net
Intangible assets, net, are summarized as follows (in thousands):
December 31, 2022December 31, 2021
Gross Carrying AmountAccumulated AmortizationNet Carrying AmountGross Carrying AmountAccumulated AmortizationNet Carrying Amount
Amortized intangible assets
Patents and know-how$9,923 $(7,106)$2,817 $9,578 $(6,408)$3,170 
Licenses1,000 (4)996 — — — 
Total amortized intangible assets$10,923 $(7,110)$3,813 $9,578 $(6,408)$3,170 
Unamortized intangible assets
Tradenames and trademarks$1,008 $1,008 $1,008 $1,008 
Patents in process1,031 1,031 1,205 1,205 
Total intangible assets$12,962 $5,852 $11,791 $5,383 
Amortization expense and impairment expense for the years ended December 31, 2022, 2021, and 2020, is summarized in the table below (amounts in thousands):
Year ended December 31,
202220212020
Amortization of intangible assets$701 $820 $1,073
Impairment of intangible assets— 53 1,027
Impairment of intangible assets in 2021 related to supplier relationship assets that were determined to be unrecoverable due to attrition. Impairment of intangible assets in 2020 related to customer relationship assets that were determined to be unrecoverable due to lower than expected margins.
Expected future amortization of intangible assets as of December 31, 2022, is as follows (in thousands):
 Estimated
 Amortization
Year Ending December 31,Expense
2023$756 
2024756 
2025361 
2026207 
2027206 
Thereafter1,527 
Total amortization expense$3,813