Goodwill and Intangible Assets

3 Months Ended

Mar. 31, 2024

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 upon the occurrence of certain events or substantive changes in circumstances. There were no indicators of impairment in the three months ended March 31, 2024. The balance of the Company’s goodwill was $40.3 million as of March 31, 2024 and December 31, 2023.

Intangible Assets

The following table presents details of the Company’s intangible assets as of March 31, 2024 ($ in thousands):


	March 31, 2024
	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	$	37,367	$	(19,158)	$	(2,459)	$	15,750	7.1
Customer relationships	25,718		(9,518)		(2,213)		13,987		9.0
Commercialization rights	11,579		(4,812)		—		6,767		5.3
Trademarks and tradenames	5,220		(1,809)		(335)		3,076		9.2

Total intangible assets with finite lives	79,884		(35,297)		(5,007)		39,580
Intangible assets with indefinite lives:
Acquired in-process technology	1,250		—		—		1,250
Favorable license agreement	2,500		—		—		2,500
Total intangible assets with indefinite lives	3,750		—		—		3,750
Total intangible assets	$	83,634	$	(35,297)	$	(5,007)	$	43,330

The following table presents details of the Company’s intangible assets as of December 31, 2023 ($ in thousands):


	December 31, 2023
	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	$	37,367	$	(18,340)	$	(2,269)	$	16,758	7.2
Customer relationships	25,718		(9,094)		(1,959)		14,665		9.2
Commercialization rights	11,579		(4,496)		—		7,083		5.6
Trademarks and tradenames	5,220		(1,713)		(288)		3,219		9.3

Total intangible assets with finite lives	79,884		(33,643)		(4,516)		41,725
Intangible assets with indefinite lives:
Acquired in-process technology	1,250		—		—		1,250
Favorable license agreement	2,726		—		—		2,726
Total intangible assets with indefinite lives	3,976		—		—		3,976
Total intangible assets	$	83,860	$	(33,643)	$	(4,516)	$	45,701

Acquisition of Intangible Assets

In January 2023 and July 2023, the Company acquired the intangible assets of HLA Data Systems and MediGO, respectively. The intangible assets are included in Acquired and developed technology, Customer relationships and Trademarks and tradenames as of March 31, 2024 and December 31, 2023.

Amortization of Intangible Assets

Intangible assets are carried at cost less accumulated amortization. Amortization expenses are recorded to cost of testing services, cost of product, cost of patient and digital solutions, and sales and marketing expenses in the condensed consolidated statements of operations.

The following table summarizes the Company’s amortization expense of intangible assets (in thousands):


	Three Months Ended March 31,
	2024		2023
Cost of testing services	$	329	$	329
Cost of product	420		418
Cost of patient and digital solutions	271		248
Sales and marketing	633		595
Total	$	1,653	$	1,590

The following table summarizes the Company’s estimated future amortization expense of intangible assets with finite lives as of March 31, 2024 (in thousands):


Years Ending December 31,	Cost of Testing Services		Cost of Product		Cost of Patient and Digital Solutions		Sales and Marketing		Total
Remainder of 2024	$	987	$	1,237	$	578	$	1,885	$	4,687
2025	1,316		1,649		681		2,513		6,159
2026	1,316		737		681		2,511		5,245
2027	1,316		737		681		2,497		5,231
2028	1,316		737		681		2,497		5,231
Thereafter	1,509		2,540		1,462		7,516		13,027
Total future amortization expense	$	7,760	$	7,637	$	4,764	$	19,419	$	39,580