Intangible Assets, net

9 Months Ended

Sep. 30, 2020

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets, net

Intangible Assets, net

The Company’s definite-lived intangible assets as of September 30, 2020 and December 31, 2019 consisted of the following:

	September 30, 2020		December 31, 2019
Customer relationships	$	53,000	$	52,000
Developed technologies	34,500		32,000
Trade name	3,300		3,000
Installed user base	1,400		—
	92,200		87,000
Less: Accumulated amortization	(41,998)		(35,152)
Intangible assets, net	$	50,202	$	51,848

Amortization of definite-lived intangible assets is provided over their estimated useful lives on a straight-line basis or the pattern in which economic benefits are consumed, if reliably determinable. The Company reviews its definite-lived intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Amortization expense from continuing operations for the three months ended September 30, 2020 and 2019 was $2,180 and $2,197, respectively. Amortization expense from continuing operations for the nine months ended September 30, 2020 and 2019 was $6,199 and $6,681, respectively.

At July 22, 2020, the Company recorded $5,200 of definite-lived intangible assets and accumulated amortization of $647 related to the assignment of OpenNMS (see Note 19). These intangible assets are amortized over a period of 4 to 6 years.

During the three months ended June 30, 2019, the Company identified an indicator of impairment with respect to the NantHealth Labs, Inc. definite-lived intangible assets given the decline in sales and the Company's decision to cease commercial sales of its liquid biopsy test offering to focus on performing a study to measure the clinical utility of the AR-V7 analyte for informing treatment in patients with castration-resistant prostate cancer. Although the Company will continue this study while also pursuing other strategically aligned clinical studies that support its liquid biopsy platform, the Company determined that the assets were not recoverable given the significant amount of costs required to further build evidence of clinical utility while also ceasing commercial sales of the Liquid GPS product. Therefore, the Company fully impaired the intangible assets as of June 30, 2019 and recorded an impairment loss of $3,977 within operating expenses.

The estimated future amortization expense over the next five years and thereafter for the intangible assets that exist as of September 30, 2020 is as follows:

	Amounts
Remainder of 2020	$	2,232
2021	8,930
2022	8,930
2023	4,346
2024	4,283
2025	4,147
Thereafter	17,334
Total future intangible amortization expense	$	50,202