Goodwill and Intangibles

6 Months Ended

Jun. 30, 2022

Goodwill and Intangibles

Goodwill and Intangibles

3. Goodwill and Intangibles

Goodwill of $5.8 million and in-process R&D of $21.7 million were recorded in connection with the Acquisition of VCN, as described in Note 2. The Company performs an impairment test for IPR&D and for goodwill on an annual basis on October 1 or more frequently if events or changes in circumstances indicate that the asset might be impaired. This analysis requires significant judgments, including primarily the estimation of future development costs, the probability of success in various phases of its development programs, potential post-launch cash flows and a risk-adjusted weighted average cost of capital. The Company did not identify any impairments to IPR&D and goodwill during the quarter ended June 30, 2022

The following table provides the Company’s goodwill as of June 30, 2022. During the three months ended June 30, 2022 the Company recognized a measurement period adjustment related to the estimate of acquired liabilities resulting in a $277,000 reduction in accrued liabilities and Goodwill.

	Goodwill (in thousands)
Balance at December 31, 2021	$	—
Goodwill from Acquisition of VCN		5,765
Goodwill impairment loss		—
Measurement Period Adjustment		(277)
Effects of exchange rates		(303)
Balance at June 30, 2022	$	5,185

The following table provides the Company’s in-process R&D as of June 30, 2022. There was no change in in-process R&D during the quarter ended June 30, 2022.

	In-process
	R&D (in thousands)
Balance at December 31, 2021	$	—
Acquired IPR&D -		21,703
In-process R&D impairment loss		—
Effects of exchange rates		(1,141)
Balance at June 30, 2022	$	20,562