Intangible Assets and Goodwill

12 Months Ended

Dec. 31, 2023

Intangible Assets and Goodwill [Abstract]

Intangible Assets and Goodwill

8. Intangible Assets and Goodwill

Intangible assets consist of the following (in thousands):

December 31, 2023	Balance		Accumulated Amortization			Net Book Value
Core technology	$	5,700	$	(4,845	)	$	855
Product technology		4,808		(3,866	)		942
Customer relationships		6,900		(5,865	)		1,035
Tradenames		1,500		(1,275	)		225
Pharos customer lists		5,314		(1,052	)		4,262
	$	24,222	$	(16,903	)	$	7,319

December 31, 2022	Balance		Accumulated Amortization			Net Book Value
Core technology	$	5,700	$	(4,275	)	$	1,425
Product technology		12,182		(3,018	)		9,164
Customer relationships		6,900		(5,175	)		1,725
Tradenames		1,500		(1,125	)		375
Pharos customer lists		5,314		(609	)		4,705
	$	31,596	$	(14,202	)	$	17,394

The Company recorded amortization expense of $2.7 million and $2.9 million during the years ended December 31, 2023 and 2022, respectively.

During the year ended December 31, 2023 the Company recognized an adjustment of $7.4 million to the carrying value of product technology as a result of the revaluation of contingent consideration related to the TheraClear asset acquisition (Note 3).

The following table summarizes the estimated future amortization expense for the above intangible assets for the next five years (in thousands):

Years ending December 31:
2024	1,971
2025	1,266
2026	561
2027	561
2028	561

Goodwill consists of the following (in thousands):

	December 31,
	2023		2022
Dermatology recurring procedures segment	$	5,674	$	7,958
Dermatology procedures equipment segment		845		845
	$	6,519	$	8,803

During the year ended December 31, 2023, the Company recognized a goodwill impairment charge of $2.3 million related to the dermatology recurring procedures segment primarily driven by a decline in projected cash flows, including revenues and profitability (see Note 2).