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Goodwill and Intangible Assets | 6 Months Ended
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Jul. 01, 2023
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Intangible Assets | 6. Goodwill and Intangible Assets Goodwill The carrying value of goodwill was $1.0 million as of both July 1, 2023 and December 31, 2022. 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 2023 and determined that its goodwill was not impaired. Intangible Assets The following table summarizes the components of gross and net of intangible assets carrying amounts (in thousands):
|  | July 1, 2023 |  |  |  |  | December 31, 2022 |
|  | Gross Carrying Amount |  |  | Accumulated Amortization |  |  | Net Carrying Amount |  |  | Remaining Amortization Life |  | Gross Carrying Amount |  |  | Accumulated Amortization |  |  | Net Carrying Amount |
Customer relationships |  | $ | 340 |  |  | $ | 245 |  |  | $ | 95 |  |  | 3.80 Years |  | $ | 340 |  |  | $ | 230 |  |  | $ | 110 |
Developed technology |  |  | 1,900 |  |  |  | 407 |  |  |  | 1,493 |  |  | 5.61 Years |  |  | 1,900 |  |  |  | 272 |  |  |  | 1,628 |
Trade names |  |  | 300 |  |  |  | 78 |  |  |  | 222 |  |  | 6.67 Years |  |  | 300 |  |  |  | 61 |  |  |  | 239 |
Patents |  |  | 600 |  |  |  | 600 |  |  |  | - |  |  | None |  |  | 600 |  |  |  | 600 |  |  |  | - |
|  | $ | 3,140 |  |  | $ | 1,330 |  |  | $ | 1,810 |  |  |  |  | $ | 3,140 |  |  | $ | 1,163 |  |  | $ | 1,977 |
For the six months ended July 1, 2023 and July 2, 2022, amortization expense totaled $167 thousand and $96 thousand, respectively. The amortization of developed technology was charged to research and development expense and the amortization of customer relations and trade names was charged to sales and marketing expense. Estimated future amortization expense for purchased intangible assets is as follows (in thousands):
Fiscal Year: |  |  |
Remainder of 2023 (six months) |  | $ | 168 |
2024 |  |  | 335 |
2025 |  |  | 323 |
2026 |  |  | 319 |
2027 |  |  | 319 |
Thereafter |  |  | 346 |
Total |  | $ | 1,810 |

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