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GOODWILL AND INTANGIBLE ASSETS | 6 Months Ended
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Jun. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract] |
GOODWILL AND INTANGIBLE ASSETS | 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 and six months ended June 30, 2024 and 2023. The balance of the Company’s goodwill was $40.3 million as of June 30, 2024 and December 31, 2023. Intangible Assets The following table presents details of the Company’s intangible assets as of June 30, 2024 ($ in thousands):
| June 30, 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 |  |  | $ | (19,935) |  |  | $ | (2,444) |  |  | $ | 14,988 |  |  | 6.9
Customer relationships | 25,718 |  |  | (9,936) |  |  | (2,191) |  |  | 13,591 |  |  | 8.8
Commercialization rights | 11,579 |  |  | (5,128) |  |  | — |  |  | 6,451 |  |  | 5.1
Trademarks and tradenames | 5,220 |  |  | (1,904) |  |  | (331) |  |  | 2,985 |  |  | 8.9
Total intangible assets with finite lives | 79,884 |  |  | (36,903) |  |  | (4,966) |  |  | 38,015 |  |  |
Intangible assets with indefinite lives: |  |  |  |  |  |  |  |  |
Acquired in-process technology | 1,250 |  |  | — |  |  | — |  |  | 1,250 |  |  |
Favorable license agreement | 2,631 |  |  | — |  |  | — |  |  | 2,631 |  |  |
Total intangible assets with indefinite lives | 3,881 |  |  | — |  |  | — |  |  | 3,881 |  |  |
Total intangible assets | $ | 83,765 |  |  | $ | (36,903) |  |  | $ | (4,966) |  |  | $ | 41,896 |  |  |
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 Acquired and developed technology, Customer relationships, and Trademarks and tradenames are recorded under Intangible assets, net, in the condensed consolidated balance sheets as of June 30, 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 June 30, |  | Six Months Ended June 30,
| 2024 |  | 2023 |  | 2024 |  | 2023
Cost of testing services | $ | 329 |  |  | $ | 329 |  |  | $ | 658 |  |  | $ | 658 |
Cost of product | 411 |  |  | 416 |  |  | 831 |  |  | 834 |
Cost of patient and digital solutions | 238 |  |  | 255 |  |  | 509 |  |  | 503 |
Sales and marketing | 628 |  |  | 606 |  |  | 1,261 |  |  | 1,201 |
Total | $ | 1,606 |  |  | $ | 1,606 |  |  | $ | 3,259 |  |  | $ | 3,196 |
The following table summarizes the Company’s estimated future amortization expense of intangible assets with finite lives as of June 30, 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 |  | $ | 658 |  |  | $ | 828 |  |  | $ | 340 |  |  | $ | 1,259 |  |  | $ | 3,085 |
2025 |  | 1,316 |  |  | 1,656 |  |  | 681 |  |  | 2,517 |  |  | 6,170 |
2026 |  | 1,316 |  |  | 739 |  |  | 681 |  |  | 2,515 |  |  | 5,251 |
2027 |  | 1,316 |  |  | 739 |  |  | 681 |  |  | 2,501 |  |  | 5,237 |
2028 |  | 1,316 |  |  | 739 |  |  | 681 |  |  | 2,501 |  |  | 5,237 |
Thereafter |  | 1,509 |  |  | 2,543 |  |  | 1,462 |  |  | 7,521 |  |  | 13,035 |
Total future amortization expense |  | $ | 7,431 |  |  | $ | 7,244 |  |  | $ | 4,526 |  |  | $ | 18,814 |  |  | $ | 38,015 |

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 30 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/350-30/tableOfContent Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/350-20/tableOfContent + Details
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