Goodwill and Intangible Assets

3 Months Ended

Mar. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND INTANGIBLE ASSETS

Goodwill

Goodwill is recorded when the purchase price of an acquisition exceeds the fair value of the net tangible and identified intangible assets acquired.

Goodwill is tested annually for impairment at the reporting unit level during the fourth quarter or earlier upon the occurrence of certain events or substantive changes in circumstances. There were no indicators of impairment in the three months ended March 31, 2021. The balance of the Company's goodwill as of March 31, 2021 and December 31, 2020 was $26.1 million and $23.9 million, respectively.

Intangible Assets

The following tables present details of the Company’s intangible assets as of March 31, 2021 ($ in thousands):


	March 31, 2021
	Gross Carrying Amount		Accumulated Amortization		Foreign Currency Translation		Net Carrying Amount		Weighted Average Remaining Useful Life (In Years)
Intangible assets with finite lives:
Acquired and developed technology	$	33,569	$	(9,692)	$	(1,262)	$	22,615	9.0
Customer relationships	19,308		(5,015)		(953)		13,340		10.6
Commercialization rights	8,079		(1,241)		—		6,838		8.4
Trademarks and tradenames	2,380		(856)		(110)		1,414		9.6
Total intangible assets with finite lives	$	63,336	$	(16,804)	$	(2,325)	$	44,207
Acquired in-process technology	1,250		—		—		1,250
Total intangible assets	$	64,586	$	(16,804)	$	(2,325)	$	45,457

The following table presents details of the Company’s intangible assets as of December 31, 2020 ($ in thousands):


	December 31, 2020
	Gross Carrying Amount		Accumulated Amortization		Foreign Currency Translation		Net Carrying Amount		Weighted Average Remaining Useful Life (In Years)
Intangible assets with finite lives:
Acquired and developed technology	$	31,209	$	(8,991)	$	(725)	$	21,493	9.1
Customer relationships	18,168		(4,684)		(449)		13,035		10.9
Commercialization rights	8,079		(1,039)		—		7,040		8.7
Trademarks and tradenames	2,360		(804)		(19)		1,537		9.9
Total intangible assets with finite lives	$	59,816	$	(15,518)	$	(1,193)	$	43,105
Acquired in-process technology	1,250		—		—		1,250
Total intangible assets	$	61,066	$	(15,518)	$	(1,193)	$	44,355

Acquisition of Intangible Assets

In June 2020, the Company commercially launched AlloSeq HCT, a NGS solution for chimerism testing for stem cell transplant recipients. This technology has the potential to provide better sensitivity and data analysis compared to current solutions on the market. AlloSeq HCT is included in Acquired and developed technology as of December 31, 2020 and March 31, 2021.

Amortization of Intangible Assets

Amortization expense was $1.3 million and $1.1 million for the three months ended March 31, 2021 and 2020, respectively. For the three months ended March 31, 2021, expenses of $0.3 million, $0.5 million, $0.1 million and $0.4 million were amortized to cost of testing services, cost of product, cost of digital and other and sales and marketing, respectively. For the three months ended March 31, 2020, expenses of $0.3 million, $0.4 million, $0.1 million and $0.3 million were amortized to cost of testing services, cost of product, cost of digital and other and sales and marketing, respectively.

The following table summarizes the Company’s estimated future amortization expense of intangible assets with finite lives as of March 31, 2021 (in thousands):


Years Ending December 31,	Cost of Testing Services		Cost of Product		Cost of Digital and Other		Sales and Marketing		Total
Remainder of 2021	$	987	$	1,430	$	323	$	1,083	$	3,823
2022	1,316		1,906		431		1,437		5,090
2023	1,316		1,906		431		1,427		5,080
2024	1,316		1,906		431		1,427		5,080
2025	1,316		1,906		431		1,427		5,080
Thereafter	5,457		5,020		1,622		7,955		20,054
Total future amortization expense	$	11,708	$	14,074	$	3,669	$	14,756	$	44,207