Goodwill and Intangible Assets

9 Months Ended

Sep. 30, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill represents the cost in excess of the fair value of the net assets acquired in a business combination. Goodwill is tested for impairment at the reporting unit level on an annual basis and on an interim basis if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. We perform our annual goodwill impairment test as of October 1. As of September 30, 2021, no impairment charges have been recorded.

The changes in the carrying amount of goodwill were as follows (in thousands):


December 31, 2020	$	—
Acquisition	34,279

September 30, 2021	$	34,279

Intangible assets consist of patents and intangible assets acquired in a business combination, primarily technology, customer relationships and a trade name. Patents are recorded at cost to obtain and amortized over the useful lives. Intangible assets acquired in a business combination are recorded at fair value on the date of acquisition and amortized over their estimated useful lives.

The following table presents the components of net intangible assets (in thousands):


	As of September 30, 2021							As of December 31, 2020
	Weighted Average Useful Life (Years)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Acquired technology	4	$	6,600	$	(275)	$	6,325	$	—	$	—	$	—
Acquired customer relationships	10	300		(5)		295		—		—		—
Acquired trade name	2	100		(8)		92		—		—		—
Patents	10	2,708		(1,227)		1,481		2,538		(955)		1,583
Total		$	9,708	$	(1,515)	$	8,193	$	2,538	$	(955)	$	1,583

Amortization expense related to intangible assets was $0.4 million and $0.1 million for the three months ended September 30, 2021 and 2020, respectively, and $0.6 million and $0.3 million for the nine months ended September 30, 2021 and 2020, respectively. As of September 30, 2021, expected remaining amortization expense of intangible assets by fiscal year is as follows (in thousands):


Three months ended December 31, 2021	$	541
2022	2,021
2023	1,910
2024	1,867
2025	1,154
2026	160
Thereafter	540
Total expected amortization expense	$	8,193