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Goodwill and Intangible Assets

6 Months Ended

Jun. 30, 2024

Goodwill and Intangible Assets

Goodwill and Intangible Assets

Note 5. Goodwill and Intangible Assets

Goodwill

In the third quarter of fiscal 2021, we completed the AffloVest Acquisition. The purchase price of the AffloVest product line exceeded the net acquisition-date estimated fair value amounts of the identifiable assets acquired and the liabilities assumed by $31.1 million, which was assigned to goodwill. 

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Intangible Assets

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Our patents and other intangible assets are summarized as follows:

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​	​	​	​	​	​	​	​	​	​	​	​
​	​	Weighted-	​	At June 30, 2024
​	​	Average	​	Gross		​	​		​	​
​	​	Amortization	​	Carrying		​	Accumulated		​	Net
(In thousands)		Period	​	Amount		​	Amortization		​	Amount
Definite-lived intangible assets:	​	​	​	​	​	​	​	​	​	​	​
Patents	​	12 years	​	$	1,060	​	$	290	​	$	770
Defensive intangible assets	​	1 year	​	​	1,125	​	​	993	​	​	132
Customer accounts	​	—	​	​	125	​	​	125	​	​	—
Customer relationships	​	10 years	​	​	31,000	​	​	6,704	​	​	24,296
Developed technology	​	8 years	​	​	13,000	​	​	3,322	​	​	9,678
Subtotal	​	​	​	​	46,310	​	​	11,434	​	​	34,876
Unamortized intangible assets:	​	​	​	​	​	​	​	​	​	​	​
Tradenames	​	​	​	​	9,500	​	​	—	​	​	9,500
Patents pending	​	​	​	​	507	​	​	—	​	​	507
Total intangible assets	​	​	​	$	56,317	​	$	11,434	​	$	44,883

​

​

​	​	​	​	​	​	​	​	​	​	​	​
​	​	Weighted-	​	At December 31, 2023
​	​	Average	​	Gross		​	​		​	​
​	​	Amortization	​	Carrying		​	Accumulated		​	Net
(In thousands)		Period	​	Amount		​	Amortization		​	Amount
Definite-lived intangible assets:	​	​	​	​	​	​	​	​	​	​	​
Patents	​	12 years	​	$	1,018	​	$	248	​	$	770
Defensive intangible assets	​	1 year	​	​	1,125	​	​	920	​	​	205
Customer accounts	​	—	​		125	​		125	​		—
Customer relationships	​	11 years	​	​	31,000	​	​	5,511	​	​	25,489
Developed technology	​	9 years	​	​	13,000	​	​	2,731	​	​	10,269
Subtotal	​	​	​	​	46,268	​	​	9,535	​	​	36,733
Unamortized intangible assets:	​	​	​	​	​	​	​	​	​	​	​
Tradenames	​	​	​	​	9,500	​	​	—	​	​	9,500
Patents pending	​	​	​	​	491	​	​	—	​	​	491
Total intangible assets	​	​	​	$	56,259	​	$	9,535	​	$	46,724

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Amortization expense was $1.0 million for each of the three months ended June 30, 2024 and 2023, and $1.9 million for each of the six months ended June 30, 2024 and 2023, of which $0.3 million in each of the three months ended June 30, 2024 and 2023, and $0.6 million in each of the six months ended June 30, 2024 and 2023, were recorded in cost of sales revenue. Future amortization expenses are expected as follows:

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​	​	​	​
(In thousands)	​	​	​
2024 (July 1 - December 31)		$	1,899
2025	​	​	3,708
2026	​		3,643
2027	​		3,635
2028	​		3,632
Thereafter	​		18,359
Total	​	$	34,876

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In the third quarter of 2023, we performed our annual goodwill impairment test utilizing both the qualitative and quantitative approach described in FASB ASU No. 2021-03, “Intangibles—Goodwill and Other (Topic 350) – Accounting Alternative for Evaluating Triggering Events.” Based on the testing using the qualitative approach, it was determined that it was not more likely than not that the fair value of the reporting

unit was less than the carrying value. As a result, it was not deemed necessary to proceed to the quantitative test and no impairment was recognized.

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- References

No definition available.

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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

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