Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Acquisition-Related Intangibles

Note 17. Goodwill and Intangible Assets

Summaries of goodwill and intangible assets balances as of December 31, 2022 and 2021 were as follows:

		December 31,
	Weighted-Average Amortization Period	2022			2021
		(in thousands)
Goodwill		$	143,027		$	50,897
In-process research & development	n/a	$	64,590		$	—
Royalty-free technology	10 Years		5,364			5,803
Less: accumulated amortization			(894	)		(387	)
Royalty-free technology, net			4,470			5,416
Customer relationships	13 Years		82,750			28,845
Less: accumulated amortization			(6,215	)		(1,125	)
Customer relationships, net			76,535			27,720
Trade name	8 Years		3,790			1,090
Less: accumulated amortization			(412	)		(45	)
Trade name, net			3,378			1,045
In-place lease intangible assets	5 Years		360			—
Less: accumulated amortization			(46	)		—
In-place lease intangible assets, net			314			—
Laboratory information system platform	5 Years		1,860			1,860
Less: accumulated amortization			(527	)		(155	)
Laboratory information system platform, net			1,333			1,705
Purchased patent	10 Years		29			31
Less: accumulated amortization			(6	)		(3	)
Purchased patent, net			23			28
Total intangible assets, net		$	150,643		$	35,914

Acquisition-related intangibles included in the above tables are generally finite-lived and are carried at cost less accumulated amortization, except for IPR&D, which is related to our 2022 acquisition of Fulgent Pharma and has an indefinite life until research

and development efforts are completed or abandoned. All other finite-lived acquisition-related intangibles related to the business combinations in 2022 and 2021 are amortized on a straight-line basis over their estimated lives, which approximates the pattern in which the economic benefits of the intangible assets are expected to be realized.

Changes in the carrying amount of goodwill for the year ended December 31, 2022 and 2021 are as follows:

	2022			2021
	(in thousands)
Balance as of January 1,
Goodwill	$	50,897		$	—
Accumulated impairment losses		—			—
		50,897			—
Goodwill acquired during year
Inform Diagnostics		71,845			—
Fulgent Pharma		22,055			—
CSI		—			27,484
FF Gene Biotech		—			23,082
		93,900			50,566
Net exchange differences
FF Gene Biotech		(1,770	)		331
Balance as of December 31,
Goodwill		143,027			50,897
Accumulated impairment losses		—			—
	$	143,027		$	50,897

Based on the carrying value of intangible assets recorded as of December 31, 2022, and assuming no subsequent impairment of the underlying assets, the annual amortization expense for intangible assets is expected to be as follows:

	Amounts
	(in thousands)
2023	$	7,864
2024		7,864
2025		7,864
2026		7,554
2027		7,225
Thereafter		47,682
Total	$	86,053