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Goodwill and Intangible Assets | 3 Months Ended
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Mar. 31, 2024
Goodwill And Intangible Assets Disclosure [Abstract] |
Goodwill and Intangible Assets | 5. Goodwill and Intangible Assets Goodwill The following table summarizes the activity in goodwill (in thousands):
|  | Identity |  |  | Premises |  |  | Total |
Balance as of January 1, 2023 |  | $ | 3,554 |  |  | $ | 6,636 |  |  | $ | 10,190 |
Currency translation adjustment |  |  | — |  |  |  | 2 |  |  |  | 2 |
Balance as of March 31, 2023 |  | $ | 3,554 |  |  | $ | 6,638 |  |  | $ | 10,192 |
Balance as of January 1, 2024 |  | $ | 3,554 |  |  | $ | 6,664 |  |  | $ | 10,218 |
Currency translation adjustment |  |  | — |  |  |  | (26 | ) |  |  | (26 | )
Balance as of March 31, 2024 |  | $ | 3,554 |  |  | $ | 6,638 |  |  | $ | 10,192 |
In accordance with ASC 350, Intangibles – Goodwill and Other, the Company tests goodwill for impairment on an annual basis, in the fourth quarter, or whenever events or changes in circumstances indicate that the carrying amount of these assets may not be recoverable. The Company performs an initial assessment of qualitative factors to determine whether the existence of events and circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. In performing the qualitative assessment, the Company identifies and considers the significance of relevant key factors, events, and circumstances that affect the fair value of its reporting units. These factors include external factors such as macroeconomic, industry, and market conditions, as well as entity-specific factors, such as actual and planned financial performance. If, after assessing the totality of relevant events and circumstances, the Company determines that it is more likely than not that the fair value of the reporting unit exceeds its carrying value and there is no indication of impairment, no further testing is performed; however, if the Company concludes otherwise, then the Company will perform the quantitative impairment test which compares the estimated fair value of the reporting unit to its carrying value, including goodwill. If the carrying amount of the reporting unit is in excess of its fair value, an impairment loss would be recorded in the condensed consolidated statements of comprehensive loss. During the three months ended March 31, 2024 and 2023, the Company noted no indicators of goodwill impairment and concluded no further testing was necessary. Intangible Assets The following table summarizes the gross carrying amount and accumulated amortization for intangible assets resulting from acquisitions (in thousands):
|  |  |  |  | Developed |  |  | Customer |  |  |  |
|  | Trademarks |  |  | Technology |  |  | Relationships |  |  | Total |
Amortization period (in years) |  | 5 |  |  | 10 – 12 |  |  | 4 – 12 |  |  |  |
Gross carrying amount as of March 31, 2024 |  | $ | 760 |  |  | $ | 9,088 |  |  | $ | 15,742 |  |  | $ | 25,590 |
Accumulated amortization |  |  | (760 | ) |  |  | (7,220 | ) |  |  | (13,615 | ) |  |  | (21,595 | )
Intangible assets, net as of March 31, 2024 |  | $ | — |  |  | $ | 1,868 |  |  | $ | 2,127 |  |  | $ | 3,995 |
Gross carrying amount as of December 31, 2023 |  | $ | 760 |  |  | $ | 9,098 |  |  | $ | 15,748 |  |  | $ | 25,606 |
Accumulated amortization |  |  | (760 | ) |  |  | (7,110 | ) |  |  | (13,485 | ) |  |  | (21,355 | )
Intangible assets, net as of December 31, 2023 |  | $ | — |  |  | $ | 1,988 |  |  | $ | 2,263 |  |  | $ | 4,251 |
Each period, the Company evaluates the estimated remaining useful lives of purchased intangible assets and whether events or changes in circumstances warrant a revision to the remaining period of amortization. If a revision to the remaining period of amortization is warranted, amortization is prospectively adjusted over the remaining useful life of the intangible asset. Intangible assets subject to amortization are amortized on a straight-line basis over their useful lives as indicated in the table above. The Company performs an evaluation of its amortizable intangible assets for impairment at the end of each reporting period. The Company did no t identify any impairment indicators during the three months ended March 31, 2024. The following table summarizes the amortization expense included in the condensed consolidated statements of comprehensive income (loss) for the three months ended March 31, 2024 and 2023 (in thousands):
|  | Three Months Ended March 31, |
|  | 2024 |  |  | 2023 |
Cost of revenue |  | $ | 110 |  |  | $ | 111 |
Selling and marketing |  |  | 130 |  |  |  | 155 |
Total |  | $ | 240 |  |  | $ | 266 |
The estimated annual future amortization expense for purchased intangible assets with definite lives as of March 31, 2024 was as follows (in thousands):
2024 (remaining nine months) |  | $ | 721 |
2025 |  |  | 961 |
2026 |  |  | 961 |
2027 |  |  | 961 |
2028 |  |  | 391 |
Total |  | $ | 3,995 |

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 350 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//350/tableOfContent + Details
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