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Goodwill and Intangible Assets
 9 Months Ended
Sep. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets GOODWILL AND INTANGIBLE ASSETS
Goodwill
Goodwill is recorded when the purchase price of an acquisition exceeds the fair value of the net tangible and identified intangible assets acquired.
Goodwill is tested annually for impairment at the reporting unit level during the fourth quarter or earlier upon the occurrence of certain events or substantive changes in circumstances. There were no indicators of impairment in the three and nine months ended September 30, 2021. The balance of the Company's goodwill as of September 30, 2021 and December 31, 2020 was $26.1 million and $23.9 million, respectively.
Intangible Assets
The following table presents details of the Company’s intangible assets as of September 30, 2021 ($ in thousands):
September 30, 2021
Gross Carrying AmountAccumulated AmortizationForeign Currency TranslationNet Carrying AmountWeighted Average Remaining Useful Life
(In Years)
Intangible assets with finite lives:
Acquired and developed technology$34,784 $(11,264)$(1,312)$22,208 8.3
Customer relationships19,308 (5,666)(1,010)12,632 10.2
Commercialization rights10,579 (1,749)— 8,830 7.9
Trademarks and tradenames2,380 (939)(119)1,322 9.2
Other250 (125)— 125 0.5
Total intangible assets with finite lives$67,301 $(19,743)$(2,441)$45,117 
Acquired in-process technology3,250 — — 3,250 
Total intangible assets$70,551 $(19,743)$(2,441)$48,367 
The following table presents details of the Company’s intangible assets as of December 31, 2020 ($ in thousands):
December 31, 2020
Gross Carrying AmountAccumulated AmortizationForeign Currency TranslationNet Carrying AmountWeighted Average Remaining Useful Life
(In Years)
Intangible assets with finite lives:
Acquired and developed technology$31,209 $(8,991)$(725)$21,493 9.1
Customer relationships18,168 (4,684)(449)13,035 10.9
Commercialization rights8,079 (1,039)— 7,040 8.7
Trademarks and tradenames2,360 (804)(19)1,537 9.9
Total intangible assets with finite lives$59,816 $(15,518)$(1,193)$43,105 
Acquired in-process technology1,250 — — 1,250 
Total intangible assets$61,066 $(15,518)$(1,193)$44,355 
Acquisition of Intangible Assets
In June 2021, the Company acquired commercialization rights in an exclusive partnership for comprehensive data analytics in relation to NGS-based metagenomics testing for infectious diseases. This is included within Commercialization rights as of September 30, 2021.
In June 2021, the Company acquired the Transplant Hero patient application. The patient application is included in Acquired and developed technology as of September 30, 2021.
Also in June 2021, the Company entered into a strategic agreement with OrganX to develop clinical decision support tools across the transplant patient journey. As of September 30, 2021, the Company included $2.0 million in Acquired in-process technology for milestones related to the strategic agreement.
As of September 30, 2021, the Company included acquisitions of $7.5 million, which included $3.6 million of Acquired and developed technology, $2.5 million of Commercialization rights, $1.1 million of Customer relationships and $0.3 million of Other intangible assets.
Amortization of Intangible Assets
Amortization expense was $1.5 million and $1.2 million for the three months ended September 30, 2021 and 2020, respectively. For the three months ended September 30, 2021, expenses of $0.3 million, $0.4 million, $0.3 million and $0.5 million were amortized to cost of testing services, cost of product, cost of digital and other and sales and marketing, respectively. For the three months ended September 30, 2020, expenses of $0.3 million, $0.4 million, $0.1 million and $0.4 million were amortized to cost of testing services, cost of product, cost of digital and other and sales and marketing, respectively.
Amortization expense was $4.2 million and $3.5 million for the nine months ended September 30, 2021 and 2020, respectively. For the nine months ended September 30, 2021, expenses of $1.0 million, $1.4 million, $0.5 million and $1.3 million were amortized to cost of testing, cost of product, cost of digital and other and sales and marketing, respectively. For the nine months ended September 30, 2020, expenses of $1.0 million, $1.2 million, $0.2 million and $1.1 million were amortized to cost of testing, cost of product, cost of digital and other and sales and marketing, respectively.
The following table summarizes the Company’s estimated future amortization expense of intangible assets with finite lives as of September 30, 2021 (in thousands):
Years Ending December 31,Cost of Testing ServicesCost of ProductCost of Digital and OtherSales and MarketingTotal
Remainder of 2021$329 $473 $209 $498 $1,509 
20221,316 1,894 836 1,804 5,850 
20231,316 1,894 836 1,732 5,778 
20241,316 1,894 600 1,732 5,542 
20251,316 1,894 431 1,732 5,373 
Thereafter5,457 5,008 1,622 8,978 21,065 
Total future amortization expense$11,050 $13,057 $4,534 $16,476 $45,117