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Intangible Assets and Goodwill
 12 Months Ended
Dec. 31, 2024
Intangible Assets and Goodwill [Abstract]  
Intangible Assets and Goodwill
7. Intangible Assets and Goodwill


Intangible assets consist of the following (in thousands):

December 31, 2024  
Gross Carrying
Value
    
Accumulated
Amortization
    
Net Book Value
  
Core technology
  
$
5,700
    
$
(5,415
)
  
$
285
  
Product technology
    
4,808
      
(3,984
)
    
824
  
Customer relationships
    
6,900
      
(6,555
)
    
345
  
Tradenames
    
1,500
      
(1,425
)
    
75
  
Pharos customer lists
     5,314       (1,495 )     3,819  
 
  
$
24,222
    
$
(18,874
)
  
$
5,348
  

December 31, 2023  
Gross Carrying
Value
    
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  


The Company recorded amortization expense of $2.0 million and $2.7 million during the years ended December 31, 2024 and 2023, respectively.



During 2023, the Company revised its projections of expected revenues and gross profits to be earned from TheraClear devices. The fair value of the contingent consideration as of December 31, 2023 was estimated to be $1.2 million, which resulted in a reduction in contingent consideration of $7.4 million with a corresponding adjustment to the carrying value of the product technology intangible asset. There was no such revaluation of the contingent consideration during the year ended December 31, 2024.
 

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:
      
2025
  
$
1,266
  
2026
  
$
561
  
2027
  
$
561
  
2028
  
$
561
  
2029
  
$
561
  


Goodwill consists of the following (in thousands):

   
December 31,
  
   
2024
    
2023
  
Dermatology recurring procedures segment
  
$
1,813
    
$
5,674
  
Dermatology procedures equipment segment
    
845
      
845
  
   
$
2,658
    
$
6,519
  


During the years ended December 31, 2024 and 2023, the Company recognized goodwill impairment charges of $3.9 million and $2.3 million, respectively, related to the dermatology recurring procedures segment primarily driven by a decline in projected cash flows, including revenues and profitability (see Note 2).