Goodwill and Intangible Assets

6 Months Ended

12 Months Ended

Jun. 30, 2023

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

6. Goodwill and Intangible Assets

As of June 30, 2023 and December 31, 2022, the Company had recorded goodwill of $13.5 million. No goodwill impairment was recognized for the six months ended June 30, 2023 and 2022.

Amortization of the intangible assets that have finite useful lives is generally recorded on a straight-line basis over their useful lives. A summary of the Company’s identifiable intangible assets as of June 30, 2023 and December 31, 2022 is as follows (in thousands):


	June 30, 2023
	Gross Carrying Amount		Accumulated Amortization		Intangibles, net
Patent rights	$	32,630	$	14,503	$	18,127
Acquired technology		21,940		6,947		14,993
Acquired licenses		5,711		368		5,343
Assembled workforce		500		425		75

Total intangible assets	$	60,781	$	22,243	$	38,538


	December 31, 2022
	Gross Carrying Amount		Accumulated Amortization		Intangibles, net
Patent rights	$	32,630	$	13,415	$	19,215
Acquired technology		21,940		6,216		15,724
Acquired licenses		5,711		184		5,527
Assembled workforce		500		375		125

Total intangible assets	$	60,781	$	20,190	$	40,591

As of June 30, 2023, the weighted average remaining life for identifiable intangible assets was 9.9 years. Aggregate amortization expense was $1.0 million and $2.1 million for the three and six months ended June 30, 2023, respectively. Aggregate amortization expense was $0.9 million and $1.9 million for the three and six months ended June 30, 2022, respectively.

Estimated future amortization expense related to intangible assets as of June 30, 2023 is as follows (in thousands):


	Amount
2023 (Remainder of 2023)	$	2,053
2024		4,031
2025		4,006
2026		4,006
2027		4,006
Thereafter		20,436

Total	$	38,538

6. Goodwill and Intangible Assets

As of December 31, 2022 and December 31, 2021, the Company had recorded goodwill of $13.5 million. The Company performed a qualitative test for goodwill impairment during the fourth quarter of 2022. Based upon the results of the qualitative testing, the Company concluded that it is

more-likely-than-not

that the fair value of the Company’s goodwill was in excess of the carrying value and therefore performing the first step of the

two-step

impairment test was unnecessary. The conclusion has not changed as of December 31, 2022 and no goodwill impairment was recognized for the years ended December 31, 2022 and 2021.

The Company’s intangible assets, excluding goodwill, are composed of patent rights, acquired technology, acquired licenses, and assembled workforce. Amortization of the intangible assets that have finite useful lives is generally recorded on a straight-line basis over their useful lives. A summary of the Company’s identifiable intangible assets as of December 31, 2022 and December 31, 2021 is as follows (in thousands):


	December 31, 2022
	Gross carrying amount		Accumulated amortization		Intangibles, net
Patent rights	$	32,630	$	13,415	$	19,215
Acquired technology		21,940		6,216		15,724
Acquired licenses		5,711		184		5,527
Assembled workforce		500		375		125

Total intangible assets	$	60,781	$	20,190	$	40,591


	December 31, 2021
	Gross carrying amount		Accumulated amortization		Intangibles, net
Patent rights	$	32,630	$	11,239	$	21,391
Acquired technology		21,940		4,754		17,186
Assembled workforce		500		275		225

Total intangible assets	$	55,070	$	16,268	$	38,802

On June 14, 2022, the Company entered into Romeg License Agreement to acquire an exclusive license to use GLOPERBA from Romeg (see Note 3). The Company determined the acquisition of licenses to be an asset acquisition. The fair value of consideration transferred of $5.7 million was assigned to acquired licenses with an amortization period of approximately 15 years.

As of December 31, 2022, the weighted average remaining life for identifiable intangible assets was 10.4 years. Aggregate amortization expense was $3.9 million, $3.7 million, and $3.7 million for the years ended December 31, 2022, 2021, and 2020, respectively. Patent rights and acquired technology are amortized over a

15-year

period. Assembled workforce is amortized over a

5-year

period.

Estimated future amortization expense related to intangible assets at December 31, 2022 is as follows (in thousands):


Year Ended December 31,	Amount
2023	$	4,106
2024		4,031
2025		4,006
2026		4,006
2027		4,006
Thereafter		20,436

Total	$	40,591