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Goodwill and Intangible Assets

6 Months Ended

Jun. 30, 2025

Note 10. Goodwill and Intangible Assets

Goodwill

The following table represents the changes in the carrying value of goodwill as of June 30, 2025 and December 31, 2024 (in thousands):


	June 30,		December 31,
	2025		2024
Balance at beginning of period
Goodwill	$	124,701	$	125,958
Accumulated impairment losses		(104,132)		(49,569)
Subtotal		20,569		76,389

Activity during the period
Foreign currency adjustment		(1,856)		(1,257)
Goodwill impairment charge		—		(54,563)

Balance at end of period
Goodwill		122,845		124,701
Accumulated impairment losses		(104,132)		(104,132)
Total	$	18,713	$	20,569

Impairment of Goodwill

Due to a sustained decrease in the Company’s share price in the second quarter of 2024, and a reduction in the projected operating performance of the MVE reporting unit, which management deemed to be triggering events related to goodwill and indefinite-lived intangible assets, we performed an interim impairment assessment of goodwill for the MVE and CRYOPDP reporting units as of June 30, 2024, with the assistance of an independent third party valuation specialist, using management’s updated interim financial and operational plans. Based on our analysis, we concluded that there has been no impairment of the goodwill associated with the CRYOPDP reporting unit as its carrying value did not exceed its estimated fair value. We further concluded that our MVE reporting unit’s carrying value exceeded its estimated fair value, and as a result, we recorded an impairment charge of $54.6 million related to full impairment of the goodwill related to the MVE reporting unit in the consolidated statement of operations for the six months ended June 30, 2024.

Our goodwill impairment test was performed using a combination of both an income and a market approach to determine the fair value of the MVE reporting unit. The income approach utilized the estimated discounted cash flows for MVE while the market approach utilized comparable peer group information. Estimates and assumptions used in the income approach included projected cash flows for MVE and a discount rate determined using a weighted average cost of capital for risk factors specific to MVE and other market and industry data. The discount rate selected was 12.5%. The other key estimates and assumptions used in the discounted cash flow method include, but are not limited to, revenue and EBITDA growth rates, and a terminal growth rate. The estimates and assumptions used in our assessment represent a Level 3 measurement because they are supported by little or no market activity and reflect our own assumptions in measuring fair value.

Intangible Assets

The following table presents our intangible assets as of June 30, 2025 (in thousands):


									Weighted
							Net		Average
	Gross		Accumulated				Carrying		Amortization
	Amount		Amortization		Impairment		Amount		Period (years)
Non-compete agreement	$	390	$	390	$	—	$	—	—
Technology		44,763		15,157		—		29,606	7
Customer relationships		125,803		41,624		—		84,179	10
Trade name/trademark		791		240		(265)		286	9
Agent network		—		—		—		—	—
Order backlog		2,600		2,600		—		—	—
Land use rights		2,171		274		—		1,897	33
Patents and trademarks		36,823		221		(8,980)		27,622	—
Total	$	213,341	$	60,506	$	(9,245)	$	143,590

The following table presents our intangible assets as of December 31, 2024 (in thousands):


									Weighted
							Net		Average
	Gross		Accumulated				Carrying		Amortization
	Amount		Amortization		Impairment		Amount		Period (years)
Non-compete agreement	$	390	$	390	$	—	$	—	—
Technology		43,796		13,248		—		30,548	8
Customer relationships		125,434		37,172		—		88,262	10
Trade name/trademark		791		224		(265)		302	9
Agent network		—		—		—		—	—
Order backlog		2,600		2,600		—		—	—
Land use rights		2,131		240		—		1,891	33
Patents and trademarks		36,125		221		(8,980)		26,924	—
Total	$	211,267	$	54,095	$	(9,245)	$	147,927

Amortization expense for intangible assets for the three and six months ended June 30, 2025, was $3.1 million and $6.3 million, respectively. Amortization expense for intangible assets for the three and six months ended June 30, 2024 was $3.1 million and $6.3 million, respectively.

Expected future amortization of intangible assets as of June 30, 2025 is as follows:


Years Ending December 31,	Amount
2025 (excluding the six months ended June 30, 2025)	$	6,362
2026		12,716
2027		12,693
2028		12,612
2029		12,401
Thereafter		56,662
	$	113,446

Impairment of Trademarks and Trade Names

As part of our interim impairment assessment as of June 30, 2024 described further above, we recorded a $9.0 million impairment charge related to trademarks for our MVE reporting unit, and a $0.3 million impairment charge related to the write-off of Cell&Co’s trade name that is no longer in use as a result of the Company’s global rebranding initiative.