Goodwill and Intangible Assets

6 Months Ended

Jun. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

3. Goodwill and Intangible Assets

Intangible assets, net consisted of intangible assets resulting from the acquisition of NetComm and purchased software to be used in the Company’s products. Intangible assets, net consisted of the following at June 30, 2022 and December 31, 2021, respectively:


	Cost		Accumulated Amortization			Net Balance
Developed Technology	$	25,000	$	(10,716	)	$	14,284
Customer Relationships		18,000		(5,400	)		12,600
Trade Name		1,000		(1,000	)		—
Purchased software		2,344		(672	)		1,672
Totals as of June 30, 2022	$	46,344	$	(17,788	)	$	28,556


	Cost		Accumulated Amortization			Net Balance
Developed Technology	$	25,000	$	(8,930	)	$	16,070
Customer Relationships		18,000		(4,500	)		13,500
Trade Name		1,000		(830	)		170
Purchased software		1,832		(428	)		1,404
Totals as of December 31, 2021	$	45,832	$	(14,688	)	$	31,144

As of June 30, 2022, amortization expense on existing intangible assets for the next five years and beyond is as follows:


Year Ending December 31,
Remainder of 2022	$	2,982
2023		5,935
2024		5,832
2025		5,701
2026		3,606
Thereafter		4,500
	$	28,556

A summary of amortization expense recorded during the three and six months ended June 30, 2022 and 2021 is as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Product cost of revenue	$	893	$	893	$	1,786	$	1,786
Research and development		141		103		244		185
Selling, general and administrative		533		533		1,070		1,066
Totals	$	1,567	$	1,529	$	3,100	$	3,037

The Company’s goodwill is the result of its acquisition of NetComm on July 1, 2019 and represents the excess of purchase price over the estimated fair value of net assets acquired. There has been no change to the $50,177 carrying amount of goodwill since December 31, 2021.