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 The gross carrying amount and accumulated amortization of the Company’s intangible assets, net, as of December 31, 2022 were as follows:

(in thousands)	Gross Carrying Value		Accumulated Amortization		Net Carrying Value		Estimated Useful Life (Years)
Trademarks	$	10,907	$	(4,119)	$	6,788	15
Non-compete agreement	776		(395)		381		3
Customer relationships	18,089		(7,602)		10,487		5-10
Developed technology	73,188		(54,422)		18,766		3-8
Patents	2,226		(375)		1,851		3-19
Capitalized software	9,620		(1,507)		8,113		3-5
Total intangible assets	$	114,806	$	(68,420)	$	46,386

During the year ended December 31, 2022, the Company recorded a loss on the disposal of intangible assets of $2.5 million. The loss on disposal of intangible assets was recorded in the Consolidated Statements of Comprehensive Income (Loss) primarily in general and administrative expense.

The gross carrying amount and accumulated amortization of the Company’s intangible assets, net, as of December 31, 2021 were as follows:

(in thousands)	Gross Carrying Value		Accumulated Amortization		Net Carrying Value		Estimated Useful Life (Years)
Trademarks	$	10,048	$	(3,442)	$	6,606	15
Non-compete agreement	809		(139)		670		3
Customer relationships	18,625		(4,391)		14,234		5-10
Developed technology	70,900		(45,051)		25,849		8
Patents	2,050		(295)		1,755		3-19
Capitalized software	9,867		(2,971)		6,896		3-5
Total intangible assets	$	112,299	$	(56,289)	$	56,010

Amortization expense was as follows for the periods indicated:

	Year Ended December 31,
(in thousands)	2022		2021		2020
Cost of sales	$	9,450	$	9,000	$	9,465
General and administrative	2,969		2,477		2,384
Selling and marketing	2,433		1,820		—
Total amortization expense	$	14,852	$	13,297	$	11,849

The changes in the carrying value of goodwill are as follows:

	Year Ended December 31,
(in thousands)	2022		2021		2020
Beginning balance	$	123,694	$	98,531	$	98,520
Measurement period adjustments	2,154		26,600		—
Foreign currency translation impact	(1,255)		(1,437)		11
Ending balance	$	124,593	$	123,694	$	98,531

The measurement period adjustments include a $0.2 million increase due to adjustment of acquisition date tax liability for Ecomedic and a $1.98 million increase due to the finalization of the fair value of contingent consideration related to Sidermica during the year ended December 31, 2022. The Company finalized the valuation of assets acquired and liabilities assumed for the Ecomedic acquisition and all other distributor acquisitions as of June 30, 2022.