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Intangible Assets and Goodwill
 9 Months Ended 12 Months Ended
Sep. 30, 2024
Dec. 31, 2023
Intangible Assets and Goodwill [Abstract]    
Intangible Assets and Goodwill

Note 5. Intangible Assets and Goodwill

 

As a result of the merger with QPhoton in June 2022 (the “QPhoton Merger”), the Company has the following amounts related to intangible assets (in thousands):

 

   September 30, 2024   December 31, 2023 
   Gross Carrying Amount   Accumulated Amortization   Net Carrying Amount   Gross Carrying Amount   Accumulated Amortization   Net Carrying Amount 
Non-compete agreement with founder  $3,251   $(2,528)  $723   $3,251   $(1,715)  $1,536 
Website domain name and trademark   1,009    (471)   538    1,009    (320)   689 
Technology and licensed patents   12,731    (4,244)   8,487    12,731    (2,880)   9,851 
Total  $16,991   $(7,243)  $9,748   $16,991   $(4,915)  $12,076 

 

The amortization expense of the Company’s intangible assets for the three and nine months ended September 30, 2024 and 2023 was approximately $780 thousand and $2.3 million, respectively. The Company expects future amortization expense to be the following (in thousands):

 

   Amortization 
2024 (remaining three months)  $776 
2025   2,472 
2026   2,021 
2027   1,903 
2028   1,819 
Thereafter   757 
Total  $9,748 

 

The Company recorded goodwill resulting from the QPhoton Merger, calculated as the difference between the total purchase price and the value of tangible and intangible assets acquired less the liabilities assumed. The Company recorded goodwill of $55.6 million resulting from the QPhoton Merger.

 

The Company considered the intangible assets and goodwill for indicators of impairment as of September 30, 2024 and concluded there were no indicators of impairment at that time.

Note 5 – Intangible Assets and Goodwill

 

As a result of the merger with QPhoton, the Company has the following amounts related to intangible assets (in thousands):

 

 

   December 31, 2023   December 31, 2022 
   Gross Carrying Amount   Accumulated Amortization   Net Carrying Amount   Gross Carrying Amount   Accumulated Amortization   Net Carrying Amount 
Non-compete agreement with founder  $3,251   $(1,716)  $1,535   $3,251   $        (632)  $2,619 
Website domain name and trademark   1,009    (320)   689    1,009    (118)   891 
Technology and licensed patents   12,731    (2,880)   9,851    12,731    (1,061)   11,670 
Total  $16,991   $(4,915)  $12,076   $16,991   $(1,811)  $15,180 

 

The amortization expense of the Company’s intangible assets for the years ended December 31, 2023 and 2022 was $3.1 million and $1.8 million, respectively. The Company expects future amortization expense to be the following (in thousands):

 

   Amortization 
2024  $3,104 
2025   2,472 
2026   2,021 
2027   1,903 
2028   1,819 
Thereafter    757 
Total  $12,076 

 

The Company recorded goodwill resulting from the Transactions, calculated as the difference between the total purchase price and the value of tangible and intangible assets acquired less the liabilities assumed. The Company recorded goodwill of $55.6 million resulting from the Transactions. The following table provides a summary of the changes in goodwill for the years ended December 31, 2023 and 2022 (in thousands):

 

   December 31, 
   2023   2022 
Goodwill, at beginning of year  $55,573   $
-
 
Goodwill additions   
-
    55,573 
Goodwill, at end of year  $55,573   $55,573 

 

The Company tested the intangible assets and goodwill for impairment as of December 31, 2023 and concluded there was no impairment of intangible assets or goodwill at that time.