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Goodwill and Intangible Assets | 9 Months Ended
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Oct. 02, 2021
Goodwill And Intangible Assets Disclosure [Abstract] |
Goodwill and Intangible Assets | 5. Goodwill and Intangible Assets Goodwill. The carrying value of goodwill was $1.0 million and $0.5 million as of October 2, 2021 and January 2, 2021, respectively. Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired in a business combination. The Company reviews goodwill for impairment on an annual basis or whenever events or changes in circumstances indicate the carrying value may not be recoverable. The Company performs an annual impairment test by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized for the amount by which the carrying amount exceed the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. In addition, income tax effects from any tax-deductible goodwill carrying amount of the reporting unit should be considered when measuring the goodwill impairment loss, if applicable. The Company has determined that it has a single reporting unit for purposes of performing its goodwill impairment test. As the Company uses the market approach to assess impairment, its common stock price is an important component of the fair value calculation. If the Company’s stock price continues to experience significant price and volume fluctuations, this will impact the fair value of the reporting unit and can lead to potential impairment in future periods. The Company performed its annual impairment test during the second quarter of fiscal year 2021 and determined that its goodwill was not impaired. In March 2021, the Company recorded approximately $0.4 million goodwill in connection with its purchase of the PASCAL Business. As of October 2, 2021, the Company had not identified any factors that indicated there was an impairment of its goodwill and determined that no additional impairment analysis was then required. Intangible Assets. The following table summarizes the components of gross and net intangible asset balances (in thousands):
|  | October 2, 2021 |  |  |  |  | January 2, 2021 |
|  | Gross Carrying Amount |  |  | Accumulated Amortization |  |  | Net Carrying Amount |  |  | Remaining Amortization Life |  | Gross Carrying Amount |  |  | Accumulated Amortization |  |  | Net Carrying Amount |
Customer relationships |  | $ | 340 |  |  | $ | 192 |  |  | $ | 148 |  |  | 5.31 Years |  | $ | 240 |  |  | $ | 172 |  |  | $ | 68 |
Developed technology |  |  | 900 |  |  |  | 75 |  |  |  | 825 |  |  | 6.42 Years |  |  |  |  |  |  |  |  |  |  |  |
Trade names |  |  | 300 |  |  |  | 20 |  |  |  | 280 |  |  | 8.42 Years |  |  |  |  |  |  |  |  |  |  |  |
In-process R&D |  |  | 1,000 |  |  |  | — |  |  |  | 1,000 |  |  | Not applicable |  |  |  |  |  |  |  |  |  |  |  |
|  | $ | 2,540 |  |  | $ | 287 |  |  | $ | 2,253 |  |  |  |  | $ | 240 |  |  | $ | 172 |  |  | $ | 68 |
For the nine months ended October 2, 2021 and September 26, 2020, amortization expense totaled $115 thousand and $12 thousand, respectively. The amortizations of customer relationships and trade names were charged to sales and marketing expense. The amortization for developed technology was charged to research and development expense. Future estimated amortization expense excluding in-process R&D (in thousands):
Fiscal Year: |  |  |  |
2021 (three months) |  | $ | 48 |
2022 |  |  | 192 |
2023 |  |  | 192 |
2024 |  |  | 192 |
2025 |  |  | 180 |
Thereafter |  |  | 449 |
Total |  | $ | 1,253 |

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI http://asc.fasb.org/topic&trid=2144416 + Details
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