Intangible Assets, Net and Cloud Computing Arrangements, Net

12 Months Ended

Dec. 31, 2023

Intangible Assets, Net and Cloud Computing Arrangements, Net [Abstract]

INTANGIBLE ASSETS, NET AND CLOUD COMPUTING ARRANGEMENTS, NET

Note 4  INTANGIBLE ASSETS, NET AND CLOUD COMPUTING ARRANGEMENTS, NET

The components of intangible assets, net as of December 31, 2023 and 2022 were as follows:

	2023			2022
Methylation pipeline	$	592		$	592
Underwriting API		840			840
Longevity API		717			717
Less accumulated amortization and impairment		(1,771	)		(106	)
Intangible assets, net	$	378		$	2,043

The components of cloud computing arrangements, net as of December 31, 2023 and 2022 were as follows:

	2023			2022
Digital insurance platform	$	2,966		$	2,966
Less accumulated amortization and impairment		(2,966	)		(741	)
Cloud computing arrangements. net	$	-		$	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 $1,257 and $1,283 for the years ended December 31, 2023 and 2022, respectively.

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 was used, and corresponding cash flows would no longer support the asset. Accordingly, the Company recognized a $1,425 impairment loss in April 2023 representing the remaining unamortized balance of the digital insurance platform on the date of impairment.

In June of 2023, the Company determined that both the underwriting application programming interface (“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 sold the associated product at cost. For the underwriting report, the Company no longer expected sales during the amortization period. Accordingly, the Company determined the assets were not recoverable and the cash flows no longer supported the assets. In June 2023, the Company recognized impairment losses of $630 and $578 for the underwriting API and longevity API, respectively.

During the year ended December 31, 2023, the Company recognized total impairment losses of $2,633 for the digital insurance platform, the underwriting API and the longevity API assets. For the year ended December 31, 2022, the company recorded a $1,307 impairment loss related to a health study tool and a $63 impairment loss for an insurance license.

The Company’s internal use software and cloud computing arrangements, including the longevity pipeline, underwriting API, longevity API and digital insurance platform include amounts capitalized for interest.