Note 11 - Intangibles

9 Months Ended

Sep. 30, 2024

Notes to Financial Statements

Intangible Assets Disclosure [Text Block]

11. Intangibles

Intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. No impairment charges were recorded for the nine months ended September 30, 2024 and 2023.

Patent costs associated with the application and award of patents in the U.S. and various other countries are capitalized and amortized on a straight-line basis over the term of the patents as determined at the award date, which varies depending on the pendency period of the application, but generally approximates seventeen years.

Amortization of intangible assets acquired is calculated using the straight-line method over the estimated useful lives of the assets.

	Estimated Life		September 30,			December 31,
	(years)		2024			2023
Capitalized patent costs		~17	$	9,117		$	9,231
Intangible assets acquired:
Purchased intellectual property		10		250			250
Developed technology		5		24,016			22,836
Customer relationships		10		11,476			10,913
Gross intangible assets				44,859			43,230
Accumulated amortization				(20,025	)		(14,772	)
Intangibles, net			$	24,834		$	28,458

The amortization of capitalized patent costs, purchased intellectual property, and developed technology is recorded in “cost of revenue” and the amortization of customer relationships is recorded in “operating expenses” in the Consolidated Statements of Operations.

Amortization expense on intangible assets was as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2024		2023		2024		2023
Amortization expense	$	1,589	$	1,550	$	4,678	$	4,579

For intangible assets recorded at September 30, 2024, the estimated future aggregate amortization expense for the years ending December 31, 2024 through December 31, 2028 is as follows:

	Amortization
As of September 30, 2024	Expense
Remaining in 2024	$	1,621
2025		6,478
2026		6,445
2027		1,610
2028		1,600