GOODWILL AND INTANGIBLES

12 Months Ended

Dec. 31, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill represents the excess of the consideration transferred over the estimated fair value of assets acquired and liabilities assumed in a business combination. Intangible assets are measured at their respective fair values as of the

acquisition date and may be subject to adjustment within the measurement period, which may be up to one year from the acquisition date. Goodwill and indefinite-lived intangible assets are tested for impairment annually, or more frequently if events or changes in circumstances indicate that it is more likely than not that the assets are impaired. As of the annual measurement date on September 30, 2024, the fair market value of the Company's stock continues to exceed its carrying value, with no indicators of impairment as of December 31, 2024.

There were no changes to goodwill during the fiscal year ended December 31, 2024. The following table presents the changes in the Company’s goodwill balance for the fiscal year ended December 31, 2023 (in thousands):


	Goodwill
Balance at December 31, 2022	$	161,527
Purchase price adjustment ¹	1,688
Balance at December 31, 2023	$	163,215

¹ In 2023, the Company received information regarding products shipped by GeneSiC to a distributor prior to the Company’s acquisition of GeneSiC. GeneSiC had the option, but not the obligation, to accept returns sold to the distributor. The Company determined that a $1.7 million return liability should have been recorded as of the close of the acquisition on August 15, 2022. The Company recorded the return liability as a purchase price adjustment in 2023, resulting in an increase to goodwill and accounts payable and other accrued expenses of $1.7 million.

The following table presents the Company’s intangible asset balance by asset class for the fiscal year ended December 31, 2024 (in thousands):


Intangible Asset	Cost		Accumulated Amortization		Net Book Value		Amortization Method	Useful Life
Trade Names	$	900	$	(900)	$	—	Straight line	2 years
Developed Technology	53,500		(31,074)		22,426		Straight line	4-10 years
In-process R&D	1,177		—		1,177		Indefinite	N/A
Patents	34,900		(5,834)		29,066		Straight line	5-15 years
Customer Relationships	24,300		(5,771)		18,529		Straight line	10 years
Non-Competition Agreements	1,900		(903)		997		Straight line	5 years
Other	658		(658)		—		Straight line	5 years
Total	$	117,335	$	(45,140)	$	72,195

The following table presents the Company’s intangible asset balance by asset class for the fiscal year ended December 31, 2023 (in thousands):


Intangible Asset	Cost		Accumulated Amortization		Net Book Value		Amortization Method	Useful Life
Trade Names	$	900	$	(619)	$	281	Straight line	2 years
Developed Technology	53,500		(17,703)		35,797		Straight line	4-10 years
In-process R&D	1,177		—		1,177		Indefinite	N/A
Patents	34,900		(3,424)		31,476		Straight line	5-15 years
Customer Relationships	24,300		(3,341)		20,959		Straight line	10 years
Non-Competition Agreements	1,900		(523)		1,377		Straight line	5 years
Other	658		(626)		32		Straight line	5 years
Total	$	117,335	$	(26,236)	$	91,099

The following tables presents the changes in the Company’s intangible asset balance for the fiscal year ended December 31, 2024 and December 31, 2023 (in thousands):


	Intangible Assets, net
Balance at December 31, 2022	$	105,620
Additions to intangible assets	4,299
Amortization expense	(18,820)
Balance at December 31, 2023	$	91,099
Other Adjustments	22
Amortization expense	(18,926)
Balance at December 31, 2024	$	72,195

The amortization expense was $18.9 million for the fiscal year ended December 31, 2024 and was $18.8 million for the fiscal year ended December 31, 2023.

Total future amortization expense of intangible assets is estimated to be as follows (in thousands):


Fiscal Year Ending December 31,	Total
2025	$	18,645
2026	14,042
2027	5,336
2028	4,690
2029	4,690
Thereafter	23,615
Total	$	71,018

There were no impairment charges during the years ended December 31, 2024 and 2023.