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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, 2024December 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 
Patents34,540 (13,697)20,843 33,195 (12,686)20,509 
Trademarks and trade names450 (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,
2024202320242023
Cost of sales$140 $148 $281 $156 
Selling, general and administrative expenses1,080 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 
20254,884 
20264,264 
20273,337 
20282,708 
Thereafter7,311 
Total$25,200