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Goodwill and Intangible Assets | 12 Months Ended
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Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The following table sets forth the Company’s acquired intangible assets by major asset class as of December 31, 2023 and 2022, respectively (in thousands, except for useful life data):
| December 31, 2023
| Weighted Average Remaining Useful Life (in Years) |  | Gross Carrying Amount |  | Accumulated Amortization |  | Net Book Value
Purchased technology | 5 |  | $ | 13,330 |  |  | $ | (7,243) |  |  | $ | 6,087 |
Customer relationships | 11 |  | 27,548 |  |  | (8,111) |  |  | 19,437 |
Customer contracts | 1 |  | 7,000 |  |  | (6,337) |  |  | 663 |
Software license | 6 |  | 5,419 |  |  | (2,353) |  |  | 3,066 |
Patents | 3 |  | 600 |  |  | (321) |  |  | 279 |
Total |  |  | $ | 53,897 |  |  | $ | (24,365) |  |  | $ | 29,532 |
| December 31, 2022
| Weighted Average Remaining Useful Life (in Years) |  | Gross Carrying Amount |  | Accumulated Amortization |  | Net Book Value
Purchased technology | 7 |  | $ | 13,529 |  |  | $ | (5,835) |  |  | $ | 7,694 |
Customer relationships | 12 |  | 27,548 |  |  | (4,490) |  |  | 23,058 |
Customer contracts | 1 |  | 7,000 |  |  | (5,673) |  |  | 1,327 |
Software license | 7 |  | 5,419 |  |  | (1,552) |  |  | 3,867 |
Non-compete | 0 |  | 283 |  |  | (273) |  |  | 10 |
Patents | 4 |  | 600 |  |  | (236) |  |  | 364 |
Total |  |  | $ | 54,379 |  |  | $ | (18,059) |  |  | $ | 36,320 |
Intangible assets amortization expense was $6.8 million and $6.3 million for the years ended December 31, 2023 and 2022, respectively. Future amortization expense related to intangible assets as of December 31, 2023 are as follows (in thousands):
Year Ending December 31, |
2024 | $ | 5,935 |
2025 | 5,105 |
2026 | 4,709 |
2027 | 3,834 |
2028 and thereafter | 9,949 |
Total | $ | 29,532 |
Smith Micro reviews the recoverability of the carrying value of the Company's single reporting unit goodwill at least annually or whenever events or circumstances indicate a potential impairment. The annual impairment testing date is December 31 of each year. Recoverability of goodwill is determined by comparing the estimated fair value of reporting units to the carrying value of the underlying net assets in the reporting units. If the estimated fair value of a reporting unit is determined to be less than the fair value of its net assets, goodwill is deemed impaired, and an impairment loss is recognized to the extent that the carrying value of goodwill exceeds the difference between the estimated fair value of the reporting unit and the fair value of its other assets and liabilities. During the first quarter of 2023, management concluded that the written notice of termination of a U.S. Tier 1 customer agreement for the Company's family safety solution, as disclosed in Note 16 of the 2022 Form 10-K, represented a triggering event indicating possible impairment of goodwill and long-lived assets, including customer relationships intangible assets. The estimated fair value of the Company's reporting unit exceeded the fair value of the other assets and liabilities as of February 2023, and as such there was not any impairment. Additionally, late in the third quarter of 2023, the Company received notice of a termination of one of its ViewSpot contracts. Subsequently, in the fourth quarter of 2023, the Company was also informed by another ViewSpot customer that they would not enter into a further extension of their existing ViewSpot contract, which was expiring in December 2023. As part of this notice, that customer exercised its right to continued service for a transition period of up to 180 days beyond the expiration of this contract. As a result of these combined customer contract termination and expiration notifications, the Company reviewed its assets, including the customer relationship intangible asset, pertaining to ViewSpot and determined that the carrying amount of the asset group was not in excess of the fair value based upon undiscounted expected future cash flows. The Company then reassessed the lives associated with these assets and is amortizing the remaining customer relationship intangible based on the pattern of economic benefit expected to be generated from the use of that asset, which accelerated $0.9 million of amortization expense in 2023. There was no impairment of any intangible assets at December 31, 2023. Smith Micro also assessed the impact of this event and other factors through December 31, 2023, and determined that there was not any impairment of the Company’s goodwill at December 31, 2023. There also was not any impairment of the Company's goodwill at December 31, 2022.

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