Intangible Assets and Goodwill

9 Months Ended

Sep. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets and Goodwill

Note 3 - Intangible Assets and Goodwill

Intangible Assets

The following table presents the components of net intangible assets for our Collaboration Products reporting segment (in thousands):

	As of September 30, 2023						As of December 31, 2022
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Developed technology	$	486	$	(243)	$	243	$	486	$	(61)	$	425
Trade names	204		(102)		102		204		(25)		179
Total	$	690	$	(345)	$	345	$	690	$	(86)	$	604

At each reporting period, we determine if there was a triggering event that may result in an impairment of our intangible assets. During the three months ended September 30, 2023, we considered the decline in our stock price to be a triggering event for an impairment test of intangible assets, and during the three months ended March 31, 2023, we considered the declines in revenue for the Collaboration Products reporting segment to be a triggering event for an impairment test of intangible assets for this segment. As the undiscounted cash flows were less than the carrying values of the assets, the company calculated the fair value of the assets. Based on the fair value of the asset group, which was determined using a market approach, no impairment charges were recorded for the three or nine months ended September 30, 2023.

During the three and nine months ended September 30, 2022, we considered the declines in revenue for the Collaboration Products reporting segment and the decline in the Company’s market capitalization to be triggering events for an impairment test of intangible assets for this reporting unit. Based on the corresponding recoverability tests of the asset group for this reporting unit, it was determined that the carrying value exceeded the gross cash flows of the asset group. The recoverability test consisted of comparing the estimated undiscounted cash flows expected to be generated by those assets to the respective carrying amounts, and involves significant judgements and assumptions, related primarily to the future revenue and profitability of the assets. Based on the fair value of the asset group, which was determined using a market approach, we recorded impairment charges of $5,132,000 for the three and nine months ended September 30, 2022.

Related amortization expense for the three months ended September 30, 2023 and 2022 was $86,000 and $580,000, respectively. Related amortization expense for the nine months ended September 30, 2023 and 2022 was $259,000 and $1,740,000, respectively.

Future amortization expense will be as follows (in thousands):

Remainder of 2023	$	87
2024	258
Total	$	345

Goodwill

During 2022, goodwill was written down to zero with impairment charges of $7,367,000 during the nine months ended September 30, 2022.