Goodwill and Intangible Assets

9 Months Ended

Sep. 30, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Goodwill and Intangible Assets

The Company accounts for goodwill at acquisition-date fair value and other intangible assets at acquisition-date fair value less accumulated amortization. See Note 2 for a summary of the Company’s policies relating to goodwill and intangible assets.

Intangible Assets

As of September 30, 2024, the Company’s intangible assets, net consists of the following:

(in thousands)	Weighted average amortization period	Gross carrying amount		Accumulated amortization		Net carrying amount
Intangible assets
Amortizing intangible assets:
Payor contracts	13 years	$	22,191	$	(11,544)	$	10,647
Trade names	10 years	6,650		(3,084)		3,566
Clinical contracts and noncompete agreements	8 years	3,191		(1,821)		1,370
Total intangible assets		$	32,032	$	(16,449)	$	15,583

As of December 31, 2023, the Company’s intangible assets, net consists of the following:

(in thousands)	Weighted average amortization period	Gross carrying amount		Accumulated amortization		Net carrying amount
Intangible assets
Amortizing intangible assets:
Payor contracts	13 years	$	22,191	$	(10,014)	$	12,177
Trade names	10 years	6,650		(2,594)		4,056
Clinical contracts and noncompete agreements	8 years	3,191		(1,520)		1,671
Total intangible assets		$	32,032	$	(14,128)	$	17,904

The estimated aggregate amortization expense for each of the five succeeding fiscal years as of September 30, 2024 is as follows:

(in thousands)	Amount
Year ending December 31:
2024 (remaining three months)	$	774
2025	3,091
2026	3,060
2027	2,933
2028	2,828
Thereafter	2,897
Total	$	15,583

The aggregate amortization expense during the three months ended September 30, 2024 and 2023 was $774 and $784, respectively. The aggregate amortization expense during the nine months ended September 30, 2024 and 2023 was $2,321 and $2,240, respectively

Goodwill

The Company evaluates goodwill at the reporting unit level, which, for the Company, is at the level of the reportable segments, dispensary, patient services, and clinical trials & other. The goodwill allocated to each of the reporting units as of September 30, 2024 and December 31, 2023 is as follows:

(in thousands)	September 30, 2024		December 31, 2023
Patient services	$	2,679	$	2,679
Dispensary	4,551		4,551
Clinical trials & other	—		—
Total goodwill	$	7,230	$	7,230

The changes in the carrying amount of goodwill for the nine months ended September 30, 2024 and for the year ended December 31, 2023 are as follows:

(in thousands)	September 30, 2024		December 31, 2023
Balance as of January 1	$	7,230	$	21,418
Goodwill acquired	—		2,679
Goodwill impairment charges (see Note 2 and Note 7)	—		(16,867)
The end of the period	$	7,230	$	7,230