Intangible Assets

12 Months Ended

Dec. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

7. Intangible Assets

The following table presents details of the Company’s acquired intangible assets as of December 31, 2023 and 2022 (in thousands, except weighted-average amortization period):


As of December 31, 2023	Weighted-Average Amortization Period	Gross Carrying Amount		Accumulated Amortization		Net
Finite-lived intangible assets:
Developed technology	8.8 years	$	83,289	$	(19,640)	$	63,649
Customer relationships	15.0 years	6,579		(2,851)		3,728
Trade secrets and processes	20.0 years	5,256		(1,577)		3,679

Total intangible assets	9.6 years	$	95,124	$	(24,068)	$	71,056


As of December 31, 2022	Weighted-Average Amortization Period	Gross Carrying Amount		Accumulated Amortization		Net
Finite-lived intangible assets:
Developed technology	8.8 years	$	83,289	$	(10,113)	$	73,176
Customer relationships	15.0 years	6,383		(2,340)		4,043
Trade secrets and processes	20.0 years	5,256		(1,314)		3,942
Other	5.0 years	1,646		(1,646)		—
Total intangible assets	9.6 years	$	96,574	$	(15,413)	$	81,161

The gross carrying amount and accumulated amortization of the customer relationships and other intangible assets are subject to foreign currency translation effects. The Company’s $5.3 million trade secrets and processes intangible asset was recognized in connection with a royalty buyout agreement in 2018.

The Company reviews indefinite-lived intangible assets for impairment annually during the fourth quarter or more frequently if events or circumstances indicate that an impairment loss may have occurred. During the three months ended September 30, 2022, the Company reclassified a $20.8 million IPR&D asset from the Sixense acquisition to a finite-lived developed technology intangible asset upon the completion of the IPR&D project and began amortizing the intangible asset over its useful life of 8.8 years. Prior to reclassifying the IPR&D asset to a finite-lived intangible asset during the three months ended September 30, 2022, the Company performed an impairment analysis and determined that the IPR&D asset was not impaired.

The following table presents the amortization recorded related to the Company’s finite-lived intangible assets for the years ended December 31, 2023, 2022 and 2021 (in thousands):


	Year Ended December 31,
		2023		2022		2021
Cost of revenue		$	263	$	263	$	263

Sales, general and administrative		9,949		8,917		2,618
Total		$	10,212	$	9,180	$	2,881

As of December 31, 2023, expected amortization expense for the unamortized acquired intangible assets for the next five years and thereafter is as follows (in thousands):


	Amortization Expense
2024	$	10,220
2025	10,220
2026	10,220
2027	10,220
2028	10,220
Thereafter	19,956
Total amortization	$	71,056