GOODWILL AND INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2024

GOODWILL AND INTANGIBLE ASSETS:

GOODWILL AND INTANGIBLE ASSETS

4. GOODWILL AND INTANGIBLE ASSETS

As of December 31, 2024 and 2023, the carrying amount of goodwill was $15.0 million. The following table summarizes goodwill transaction for the years ended December 31, 2024 and 2023 (in thousands):

	Year Ended December 31,
	2024		2023
Balance at beginning of year	$	15,029	$	14,123
Addition		—		895
Foreign currency translation adjustment		(76)		11
Balance at end of year	$	14,953	$	15,029

The Company completed the acquisition of Lantern Machinery Analytics, Inc. in the year ended December 31, 2023. See Note 15, “Business Combination” for additional information related to the goodwill and intangible assets added from this acquisition.

Intangible assets consisted of the following (in thousands):

		December 31, 2024						December 31, 2023
	Amortization	Gross				Net		Gross				Net
	Period	Carrying		Accumulated		Carrying		Carrying		Accumulated		Carrying
	(Years)	Amount		Amortization		Amount		Amount		Amortization		Amount
Acquired intangible assets:
Customer relationships	1-10	$	9,499	$	(7,866)	$	1,633	$	9,508	$	(7,335)	$	2,173
Developed technology	4-9		34,566		(24,601)		9,965		34,650		(22,094)		12,556
Tradename and trademarks	2-10		1,598		(1,120)		478		1,598		(1,025)		573
Patent	6-10		2,100		(1,869)		231		2,100		(1,782)		318
Noncompetition agreements	3		848		(848)		—		848		(848)		—
Total		$	48,611	$	(36,304)	$	12,307	$	48,704	$	(33,084)	$	15,620

The weighted average amortization period for acquired identifiable intangible assets was 4.4 years as of December 31, 2024. The amortization expense related to intangible assets were as follows (in thousands):

	Year Ended December 31,
	2024		2023		2022
Amortization of acquired technology (included in costs of revenues)	$	2,335	$	2,266	$	2,214
Amortization of acquired intangible assets (presented separately under costs and expenses)		896		1,285		1,270
Total amortization of acquired intangible assets	$	3,231	$	3,551	$	3,484

The Company estimates future amortization expense of acquired intangible assets as follows (in thousands):

Year Ending December 31,	Amount
2025	$	3,061
2026		2,891
2027		2,738
2028		2,432
2029		747
2030 and thereafter		438
Total future amortization expense	$	12,307

There were no impairment charges for goodwill and intangible assets for the years ended December 31, 2024, 2023 and 2022.