Goodwill and Intangible Assets, net

3 Months Ended

Mar. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets, net The gross carrying amount and accumulated amortization of the Company’s intangible assets as of March 31, 2023 were as follows:


(in thousands)	Gross Carrying Value		Accumulated Amortization		Net Carrying Value		Estimated Useful Life (Years)
Developed technology	$	92,616	$	(56,828)	$	35,788	3-10
Customer relationships	18,425		(8,563)		9,862		5-10
Trademarks	11,395		(4,289)		7,106		15
Capitalized software	12,285		(2,022)		10,263		3-5
Non-compete agreement	5,861		(470)		5,391		3
Patents	2,832		(407)		2,425		3-19
Total intangible assets	$	143,414	$	(72,579)	$	70,835

The gross carrying amount and accumulated amortization of the Company’s intangible assets as of December 31, 2022 were as follows:


(in thousands)	Gross Carrying Value		Accumulated Amortization		Net Carrying Value		Estimated Useful Life (Years)
Developed technology	$	73,188	$	(54,422)	$	18,766	3-8
Customer relationships	18,089		(7,602)		10,487		5-10
Trademarks	10,907		(4,119)		6,788		15
Capitalized software	9,620		(1,507)		8,113		3-5
Non-compete agreement	776		(395)		381		3
Patents	2,226		(375)		1,851		3-19
Total intangible assets	$	114,806	$	(68,420)	$	46,386

The changes in the carrying value of goodwill for the three months ended March 31, 2023 are as follows:


(in thousands)
December 31, 2022	$	124,593

Foreign currency translation impact	582
March 31, 2023	$	125,175

In February 2023, the Company acquired all of the outstanding shares of Esthetic Medical Inc. in exchange for (i) a cash payment of $11.8 million and (ii) 109,625 shares of Class A Common Stock of the Company ($1.3 million). In addition, the seller is entitled to receive up to an additional $3.2 million in contingent consideration based upon the achievement of certain conditions defined in the purchase agreement, of which $1.9 million was considered probable as of the acquisition date. Applicable tax guidance was used to apply the simultaneous equation method to incrementally assign $4.6 million to the book value of the intangible asset in excess of the purchase price. The Company accounted for this transaction as an asset acquisition and allocated substantially all of the purchase price and the tax basis difference totaling $19.9 million to intangible assets, primarily related to developed technology.

In addition, in March 2023, the Company acquired assets from Anacapa Aesthetics LLC and recognized approximately $5 million of intangible assets, primarily related to non-compete agreements.