Goodwill and Intangible Assets

3 Months Ended

Mar. 31, 2025

Goodwill and Intangible Assets Disclosure [Abstract]

Note 6. Goodwill and Intangible Assets

Goodwill

The Company conducts its goodwill impairment analysis annually or more frequently if changes in facts and circumstances indicate that it is more likely than not that the fair value of a reporting unit may be less than its carrying value. Due to a significant decline in the Company's stock price and the potential negative impact of tariffs and other external factors on the business, management performed a quantitative and qualitative assessment and concluded that the market capitalization of $284.9 million exceeded the net carrying value of the business. Accordingly, it was determined that no events or changes in circumstances indicated that the carrying value may not be recoverable.

The following table summarizes the changes in the carrying amount of goodwill (in thousands):



Balance as of January 1, 2025	$	52,942
Purchase price adjustment		(2,514	)
Balance as of March 31, 2025	$	50,428

Intangible Assets, net

Acquired identifiable intangible assets, and related accumulated amortization, as of March 31, 2025 and December 31, 2024 consisted of (in thousands):


	March 31, 2025
	Gross Carrying Value		Accumulated Amortization		Net Book Value

Customer relationships	$	10,938	$	6,868	$	4,070
Tradenames		18,293		5,008		13,285
Developed technology		27,706		4,810		22,896
Patent and trademarks		784		653		131
Total Intangible Assets	$	57,721	$	17,339	$	40,382


	December 31, 2024
	Gross Carrying Value		Accumulated Amortization		Net Book Value

Customer relationships	$	10,880	$	6,533	$	4,347
Tradenames		18,293		4,451		13,842
Developed technology		27,706		3,656		24,050
Patent and trademarks		784		625		159
Total Intangible Assets	$	57,663	$	15,265	$	42,398

Amortization expense related to definite lived intangible assets of $2.0 million and $0.6 million was recognized for the three months ended March 31, 2025 and 2024, respectively.

As of March 31, 2025, estimated annual amortization expense related to definite lived intangible assets in future periods was as follows (in thousands):


2025	$	6,039
2026		7,763
2027		7,590
2028		7,590
2029		7,590
Thereafter		3,810
Total	$	40,382