XML 24 R13.htm IDEA: XBRL DOCUMENT
v3.24.2.u1

Goodwill and Intangible Assets, Net | 6 Months Ended
--- | ---
Jun. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Intangible Assets, Net | Goodwill and Intangible Assets, Net Goodwill During the six months ended June 30, 2023, a decline in our financial performance, overall negative trend in the video service provider channel and an uncertain economic environment contributed to a significant decline in our market capitalization. We considered this to be an impairment trigger. We, therefore, performed a quantitative valuation analysis under an income approach to estimate our reporting unit's fair value. The income approach used projections of estimated operating results and cash flows that were discounted using a discount rate based on the weighted-average cost of capital. The main assumptions supporting the cash flow projections include, but are not limited to, revenue growth, margins, discount rate, and terminal growth rate. The financial projections reflect our best estimate of economic and market conditions over the projected period, including forecasted revenue growth, margins, capital expenditures, depreciation and amortization. In addition to our valuation analysis under an income approach, we also considered the implied control premium compared to our market capitalization. We determined that the implied control premium over our market capitalization to be substantial, therefore, we recorded an impairment charge of $49.1 million during the six months ended June 30, 2023. Intangible Assets, Net The components of intangible assets, net were as follows:
| June 30, 2024 |  | December 31, 2023
(In thousands) | Gross (1) |  | Accumulated Amortization (1) |  | Net |  | Gross (1) |  | Accumulated Amortization (1) |  | Net
Capitalized software development costs | $ | 2,426 |  |  | $ | (701) |  |  | $ | 1,725 |  |  | $ | 2,161 |  |  | $ | (421) |  |  | $ | 1,740 |
Customer relationships | 6,340 |  |  | (4,165) |  |  | 2,175 |  |  | 6,340 |  |  | (3,803) |  |  | 2,537 |
Developed and core technology | 740 |  |  | (350) |  |  | 390 |  |  | 4,220 |  |  | (3,754) |  |  | 466 |
Patents | 34,540 |  |  | (13,697) |  |  | 20,843 |  |  | 33,195 |  |  | (12,686) |  |  | 20,509 |
Trademarks and trade names | 450 |  |  | (383) |  |  | 67 |  |  | 450 |  |  | (353) |  |  | 97 |
Total intangible assets, net | $ | 44,496 |  |  | $ | (19,296) |  |  | $ | 25,200 |  |  | $ | 46,366 |  |  | $ | (21,017) |  |  | $ | 25,349 |
(1)This table excludes the gross value of fully amortized intangible assets totaling $48.8 million and $45.0 million at June 30, 2024 and December 31, 2023, 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 June 30, |  | Six Months Ended June 30,
2024 |  | 2023 |  | 2024 |  | 2023
Cost of sales | $ | 140 |  |  | $ | 148 |  |  | $ | 281 |  |  | $ | 156 |
Selling, general and administrative expenses | 1,080 |  |  | 1,107 |  |  | 2,176 |  |  | 2,163 |
Total amortization expense | $ | 1,220 |  |  | $ | 1,255 |  |  | $ | 2,457 |  |  | $ | 2,319 |
Estimated future annual amortization expense related to our intangible assets at June 30, 2024, was as follows:
(In thousands) |
2024 (remaining 6 months) | $ | 2,696 |
2025 | 4,884 |
2026 | 4,264 |
2027 | 3,337 |
2028 | 2,708 |
Thereafter | 7,311 |
Total | $ | 25,200 |

X
- References No definition available. + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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 + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration