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Goodwill and Intangible Assets, Net | 12 Months Ended
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Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Intangible Assets, Net | Goodwill and Intangible Assets, Net Goodwill During the year ended December 31, 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 year ended December 31, 2023. Changes in the carrying amount of goodwill were as follows:
(In thousands) |
Balance at December 31, 2022 | $ | 49,085 |
Goodwill impairment | (49,075) |
Foreign exchange effects | (10) |
Balance at December 31, 2023 | $ | — |
Intangible Assets, Net The components of intangible assets, net were as follows:
| December 31,
| 2024 |  | 2023
(In thousands) | Gross (1) |  | Accumulated Amortization (1) |  | Net (1) |  | Gross (1) |  | Accumulated Amortization (1) |  | Net (1)
Capitalized software development costs | $ | 2,575 |  |  | $ | (1,150) |  |  | $ | 1,425 |  |  | $ | 2,161 |  |  | $ | (421) |  |  | $ | 1,740 |
Customer relationships | 6,340 |  |  | (4,526) |  |  | 1,814 |  |  | 6,340 |  |  | (3,803) |  |  | 2,537 |
Developed and core technology | 740 |  |  | (398) |  |  | 342 |  |  | 4,220 |  |  | (3,754) |  |  | 466 |
Patents | 34,758 |  |  | (14,339) |  |  | 20,419 |  |  | 33,195 |  |  | (12,686) |  |  | 20,509 |
Trademarks and trade names | 450 |  |  | (412) |  |  | 38 |  |  | 450 |  |  | (353) |  |  | 97 |
Total intangible assets, net | $ | 44,863 |  |  | $ | (20,825) |  |  | $ | 24,038 |  |  | $ | 46,366 |  |  | $ | (21,017) |  |  | $ | 25,349 |
(1)This table excludes the gross value of fully amortized intangible assets totaling $49.3 million and $45.0 million on December 31, 2024 and 2023, respectively. Amortization expense is recorded in SG&A 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:
| Year Ended December 31,
(In thousands) | 2024 |  | 2023 |  | 2022
Cost of sales | $ | 729 |  |  | $ | 443 |  |  | $ | 49 |
Selling, general and administrative expenses | 4,438 |  |  | 4,440 |  |  | 3,969 |
Total amortization expense | $ | 5,167 |  |  | $ | 4,883 |  |  | $ | 4,018 |
Estimated future annual amortization expense related to our intangible assets at December 31, 2024 is as follows:
(In thousands) |
2025 | $ | 5,048 |
2026 | 4,563 |
2027 | 3,490 |
2028 | 2,956 |
2029 | 2,645 |
Thereafter | 5,336 |
Total | $ | 24,038 |
The remaining weighted average amortization period of our intangible assets at December 31, 2024 is 6.3 years.

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- 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
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