Intangible Assets and Cloud Computing Arrangements

9 Months Ended

Sep. 30, 2023

Intangible Assets and Cloud Computing Arrangements [Abstract]

INTANGIBLE ASSETS AND CLOUD COMPUTING ARRANGEMENTS

Note 4  INTANGIBLE ASSETS AND CLOUD COMPUTING ARRANGEMENTS

The components of intangible assets and cloud computing arrangements as of September 30, 2023 and December 31, 2022 were as follows:

	September 30, 2023			December 31, 2022
Methylation pipeline	$	592		$	592
Underwriting API		840			840
Longevity API		717			717
Less: accumulated amortization and impairment		(1,721	)		(106	)
Intangible assets	$	428		$	2,043

	September 30, 2023			December 31, 2022
Digital insurance platform	$	2,966		$	2,966
Less: accumulated amortization and impairment		(2,966	)		(741	)
Cloud computing arrangements	$	-		$	2,225

Amortization of the Company’s intangible assets and cloud computing arrangements is recorded on a straight-line basis within selling, general and administrative expenses. The Company recognized amortization expense of $49 and $1,208 for the three and nine months ended September 30, 2023 and did not have any amortization expense for the three and nine months ended September 30, 2022.

In April of 2023 and as part of the Company’s planning, the Company finalized its objectives and key results (“OKRs”) for the second quarter of 2023. As part of the OKR process the Company’s goals to support the digital insurance platform indicated that the manner in which the digital insurance platform is used and corresponding cash flows would no longer support the asset. Accordingly, the Company recognized a $1,425 impairment loss in April of 2023 representing the remaining unamortized balance of the digital insurance platform at the date of impairment.

In June of 2023, the Company determined that both the underwriting API and longevity API were fully impaired as it no longer forecasted positive cash flows from the longevity report or underwriting report. For the longevity report, the Company sells the product at cost. For the underwriting report, the Company no longer expects sales during the amortization period. Accordingly, the Company has determined the assets are not recoverable and the cash flows no longer support the assets. The Company recognized impairment charges of $630 and $578 for the underwriting API and longevity API, respectively. The Company recognized an impairment loss of $0 and $2,633 for the three and nine months ended September 30, 2023, respectively.