Goodwill and Intangible Assets, Net

9 Months Ended

Sep. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill

Changes in the carrying amount of goodwill were as follows:


(In thousands)
Balance at December 31, 2021	$	48,463
Goodwill acquired during the period (1)	713
Foreign exchange effects	(241)
Balance at September 30, 2022	$	48,935

(1) During the nine months ended September 30, 2022, we recognized $0.7 million of goodwill related to the Qterics, Inc. ("Qterics") acquisition. Refer to Note 19 for further information about this acquisition.

Intangible Assets, Net

The components of intangible assets, net were as follows:


	September 30, 2022						December 31, 2021
(In thousands)	Gross (1)		Accumulated Amortization (1)		Net		Gross (1)		Accumulated Amortization (1)		Net
Capitalized software development costs	$	1,538	$	(64)	$	1,474	$	1,066	$	(27)	$	1,039
Customer relationships	6,340		(2,899)		3,441		5,000		(2,375)		2,625
Developed and core technology	4,520		(3,602)		918		4,080		(3,335)		745
Distribution rights	280		(250)		30		325		(269)		56
Patents	27,993		(10,279)		17,714		24,518		(9,015)		15,503
Trademarks and trade names	850		(680)		170		800		(599)		201
Total intangible assets, net	$	41,521	$	(17,774)	$	23,747	$	35,789	$	(15,620)	$	20,169

(1)This table excludes the gross value of fully amortized intangible assets totaling $43.8 million and $43.2 million at September 30, 2022 and December 31, 2021, respectively.

Amortization expense is recorded in selling, general and administrative expenses, except amortization expense related to capitalized software development costs, which is recorded in cost of sales. Amortization expense by statement of operations caption was as follows:


(In thousands)	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Cost of sales	$	13	$	7	$	37	$	15
Selling, general and administrative expenses	1,018		938		2,928		2,622
Total amortization expense	$	1,031	$	945	$	2,965	$	2,637

Estimated future annual amortization expense related to our intangible assets at September 30, 2022, was as follows:


(In thousands)
2022 (remaining 3 months)	$	1,074
2023	4,701
2024	4,243
2025	3,308
2026	3,089
Thereafter	7,332
Total	$	23,747