As of June 30, 2023, the Company evaluated the relevant events and circumstances under ASC 350-20-35-3C that would more likely than not reduce the fair value of a reporting unit below its carrying amount, including potential declines in Kaleyra's stock price, market capitalization and operating results, noting no such events or circumstances in the current quarter.

Following the launch of the Value Creation Program in early 2023, during the current quarter the Company decided to refocus the UK business on higher margin product offerings to further improve the group financial and operating performance, with a resulting downward revision to UK projected cash flows. In consideration of such event, the Company performed its goodwill impairment test analysis at June 30, 2023 on the reporting unit to which the relevant goodwill was allocated, driven by assumptions regarding estimated future cash flows, discount rates and perpetual growth rates to determine the relevant reporting unit’s estimated fair value. The recoverable amount of this reporting unit was estimated in accordance with the fair value approach under the discounted cash flows method based on a five-year projections period. As a result of this assessment, after recording the impairment of amortizable intangible assets, as described below, the Company concluded that no impairment losses were to be recorded on this reporting unit as of the interim date as the fair value of the reporting unit exceeded its carrying amount. No impairment indicators were noted in the other reporting units.

As of June 30, 2023 and December 31, 2022, the Company recorded the carrying amount of goodwill equal to $111.9 million and $111.5 million, respectively.

Intangible assets consisted of the following (in thousands):


	As of June 30, 2023						As of December 31, 2022
	Gross		Accumulated Amortization		Net		Gross		Accumulated Amortization		Net
Amortizable Intangible Assets:
Developed technology	$	23,772	$	12,560	$	11,212	$	23,895	$	11,162	$	12,733
Customer relationships		56,444		20,585		35,859		56,336		17,826		38,510
Trade names		8,599		3,051		5,548		8,658		2,568		6,090
Patent		145		86		59		143		76		67
Total amortizable intangible assets	$	88,960	$	36,282	$	52,678	$	89,032	$	31,632	$	57,400

The changes in carrying amounts of intangible assets consisted of the following as of June 30, 2023:


	Developed technology			Customer relationships			Trade names			Patent			Total
December 31, 2022	$	12,733		$	38,510		$	6,090		$	67		$	57,400
Additions		—			—			—			—			—
Amortizations		(1,354	)		(2,694	)		(475	)		(9	)		(4,532	)
Impairments		(234	)		—			(87	)		—			(321	)
Foreign exchange		67			43			20			1			131
June 30, 2023	$	11,212		$	35,859		$	5,548		$	59		$	52,678

As of June 30, 2023, the Company evaluated the relevant events or changes in circumstances under ASC 360-10-35-21 that could potentially indicate that the carrying amount of the amortizable intangible assets may not be recoverable.

During the three months ended June 30, 2023, impairment charges of $234,000 and $87,000 were recorded on UK developed technology and trade names amortizable intangible assets, respectively. Impairment losses were recorded in relation to the no more recoverable amounts of intangible assets following the overall downward revision to UK projected cash flows, as described above. The revised estimated cash flow projections were the drivers for impairment losses determined as the difference between the carrying amount and the estimated fair values under the Relief from Royalty Method for the developed technology and trade names intangibles. No impairment indicators were noted on other amortizable intangible assets.

Impairment loss is included in “Intangible asset impairment” on the condensed consolidated statements of operations.

Amortization expense was $2.3 million and $4.4 million for the three months ended June 30, 2023 and 2022, respectively. Amortization expense was $4.5 million and $8.8 million for the six months ended June 30, 2023 and 2022, respectively.