Goodwill and Intangible Assets, Net

3 Months Ended

Mar. 31, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets, Net

Goodwill and Intangible Assets, Net

Changes in goodwill consisted of the following (in thousands):

Balance as of December 31, 2023	$	68,001
Foreign currency translation	—
Balance as of March 31, 2024	$	68,001

We identified a triggering event related to the significant decline in our stock price, indicating a potential impairment of our goodwill during the quarter ended March 31, 2024. We determined no goodwill impairment charge was required based on a comparison of our market capitalization against the carrying value of our equity.

Intangible assets consisted of the following (in thousands):

	March 31, 2024
	Weighted Average Useful Life (in years)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Trademarks / trade names	Indefinite	2,900		—		2,900
Total		$	2,900	$	—	$	2,900

	December 31, 2023
	Weighted Average Useful Life (in years)	Gross Carrying Amount		Accumulated Amortization		Impairment	Net Carrying Amount
Licenses	Indefinite	$	611	$	—	(611)	$	—
Trademarks / trade names	Indefinite	8,000		—		(5,100)	2,900
Technology	5	18,360		(6,234)		(12,126)	—
Customer relationships	8.4	55,170		(12,508)		(42,662)	—
Total		$	82,141	$	(18,742)	(60,499)	$	2,900

We did not record any amortization of intangible assets for the three months ended March 31, 2024 as our finite lived intangible assets have been fully impaired. Amortization of intangible assets for the three months ended March 31, 2023 was $2.0 million, and is included in “Depreciation and amortization” in the statements of operations.

Estimated future amortization for definite-lived intangible assets as of March 31, 2024 is zero as our finite lived intangible assets have been fully impaired.

Intangible assets also include crypto we own, which are accounted for as indefinite-lived intangible assets and are initially measured at cost (under a first-in, first-out basis) under the guidance in ASC 350 Intangibles - Goodwill and Other. These assets are not amortized, but assessed for impairment continually given the volatility of markets for these assets. Impairment exists when the carrying amount exceeds its fair value. The fair value of crypto is determined as the lowest price of executed transactions during the measurement or holding period using the quoted price of the crypto in our principal market. The carrying amount of a crypto asset after its impairment becomes its new cost basis. Impairment losses are not reversible or recoverable and are included in “Crypto costs” in the consolidated statement of operations. Impairment losses were not material for the three months ended March 31, 2024 or March 31, 2023. Our owned crypto is typically liquidated on a daily basis during the fulfillment of customer orders and settlement with our liquidity providers. We classify cash flows from crypto within cash flows from operating activities.