Goodwill and Intangible Assets

9 Months Ended

Sep. 30, 2026

Intangible Asset, Goodwill and Other [Abstract]

The change in the carrying amount of goodwill during the nine months ended September 30, 2026 was as follows:



Balance at December 31, 2025	$	13,520
Impairment charges	(11,879)
Balance at September 30, 2026	$	1,641

During the first quarter of 2026, the Company concluded that a triggering event had occurred during the period for the goodwill associated with the Fabric Genomics reporting unit primarily due to a downward revision of forecasted cash flows driven by changes in commercial strategy and go-to-market execution, and lower revenue and profitability expectations.

The Company performed a quantitative analysis as of March 31, 2026 to determine the fair value of the Fabric Genomics reporting unit. The fair value was determined through estimating the reporting unit’s discounted future cash flows expected to be generated. Significant assumptions utilized in the valuation include, but are not limited to, prospective financial information, growth rates, terminal value, discount rates, and comparable market multiples. Based on the quantitative analysis, the Company concluded that the reporting unit’s carrying value was greater than the fair value and recorded a non-cash impairment charge of $11.9 million.

The following table reflects, as of September 30, 2026, the carrying values and remaining useful lives of acquired intangible assets:


	Gross Carrying Amount		Accumulated Amortization		Accumulated Impairment		Net Carrying Value		Weighted-Average Amortization Period (Years)
Tradenames and trademarks	$	54,500	$	(14,077)	$	(4,225)	$	36,198	11.6
Developed technology	62,900		(28,216)		(10,182)		24,502		4.1
Customer relationships	104,100		(22,067)		(5,001)		77,032		15.6
	$	221,500	$	(64,360)	$	(19,408)	$	137,732	12.5

Amortization expense for intangible assets was $3.6 million and $4.1 million for the three months ended September 30, 2026 and 2025, respectively, and $11.3 million and $11.5 million for the nine months ended September 30, 2026 and 2025, respectively. Amortization expense for intangible assets was recorded in selling, general and administrative expenses within the condensed consolidated statements of operations and comprehensive loss for each respective period.

During the first quarter of 2026, in connection with the triggering event described above, the Company evaluated the recoverability of the long-lived assets associated with the Fabric Genomics reporting unit. The Company compared the carrying value of the asset group to the sum of its undiscounted cash flows. The Company determined that the carrying value of the asset group was not recoverable, and therefore, the asset group failed the recoverability test under ASC 360.

The Company determined that the carrying value of the tradenames and trademarks intangible asset was not recoverable and had no remaining fair value, which resulted in a non-cash impairment charge of $4.2 million. The Company then estimated the fair value of the developed technology and customer relationship intangible assets, using the multi-period excess earnings method. Based on this analysis, the Company concluded that each respective intangible asset’s carrying value was greater than the fair value. Accordingly, the Company recorded non-cash impairment charges of $10.2 million and $5.0 million, respectively, to reduce the carrying value of the developed technology and customer relationships intangible assets to their respective estimated fair values.