Goodwill and Intangible Assets

3 Months Ended

Mar. 31, 2022

Goodwill And Intangible Assets Disclosure [Abstract]

7. Goodwill and Intangible Assets

Goodwill

The gross carrying amount and net book value of goodwill was $0.1 million at March 31, 2022, all of which resulted from the Merger. We test goodwill for impairment on an annual basis or more frequently if an impairment indicator exists. To determine if an impairment has occurred, we perform a quantitative test in which the fair value of a single reporting unit is compared to its carrying value. If the carrying value of the reporting unit exceeds the fair value of the reporting unit, we record an impairment loss equal to that difference.

Intangible assets

The gross carrying amounts and net book value of intangible assets were as follows (in thousands):

	March 31, 2022
	Gross Carrying Amount		Accumulated Amortization		Net Book Value
Intangible assets with finite lives:
Acquired license agreement	$	26,685	$	2,360	$	24,325
In-place lease		1,433		178		1,255
Total intangible assets with finite lives		28,118		2,538		25,580
Acquired in-process research & development ("IPR&D") assets		36,550		—		36,550
Total intangible and acquired IPR&D assets	$	64,668	$	2,538	$	62,130

	December 31, 2021
	Gross Carrying Amount		Accumulated Amortization		Net Book Value
Intangible assets with finite lives:
Acquired license agreement	$	26,685	$	1,968	$	24,717
In-place lease		1,433		141		1,292
Total intangible assets with finite lives		28,118		2,109		26,009
Acquired IPR&D assets		36,550		—		36,550
Total intangible and acquired IPR&D assets	$	64,668	$	2,109	$	62,559

Intangible assets are carried at cost less accumulated amortization and impairment. Amortization is over periods of 9 to 17 years, with an original weighted average period of 16.7 years, and the amortization expense is recorded in operating expenses. We test our acquired IPR&D assets for impairment on an annual basis, or more frequently if an impairment indicator exists.

Amortization expense was $0.4 million and $0.4 million for the three months ended March 31, 2022 and 2021, respectively. Based on finite-lived intangible assets recorded as of March 31, 2022, the estimated future amortization expense for the next five years is as follows (in thousands):

Year Ending December 31,	Estimated Amortization Expense
2022 (remaining nine months)	$	1,293
2023		1,733
2024		1,733
2025		1,733
2026		1,733
Thereafter		17,355