Goodwill and Intangible Assets, Net

9 Months Ended

Sep. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

During the year ended December 31, 2021, the Company purchased a domain name for $2.2 million. The purchase of the domain name created an intangible asset with an indefinite life that is not being amortized for book purposes.

There were no changes in the recorded balance of goodwill during the nine months ended September 30, 2022. In-process research and development assets were acquired in business combinations, and launched in September 2021. The Company started to amortize the assets in September 2021 using the straight-line method over the estimated useful lives determined as 5 years.

The Company determined that recent developments in domestic and global economies, including significant market volatilities, interest rate increases, and the decline in the market value of the Company's stock, which commenced prior to September 30, 2022, represent indicators that its long-lived assets may be impaired. Accordingly, the Company carried out an interim impairment test of its long-lived assets pursuant to ASC 360 - Property, Plant, and Equipment, whereby a quantitative assessment was performed to determine whether its long-lived assets were recoverable. The Company's long-lived assets represent a single group of assets that individually are not independent from the cash flows of other assets. The Company determined that the carrying amount of its long-lived assets did not exceed the sum of the undiscounted cash flows expected to result from the use of these assets, thus, its long-lived assets were recoverable as of September 30, 2022. As a result, no impairment loss was recorded for the long-lived assets.

Additionally, as of September 30, 2022, the Company performed an interim goodwill impairment test as a result of the events and circumstances previously discussed. The Company has one reporting unit. In determining the fair value of the reporting unit in accordance with ASC 350 - Intangibles - Goodwill and Other, the Company performed a quantitative assessment of goodwill as of September 30, 2022 using a combination of the income and market approach. The fair value of the reporting unit exceeded its carrying value. As a result, no impairment loss was recorded for goodwill.

The components of intangible assets and accumulated amortization are as follows (in thousands):


	As of September 30, 2022
	Weighted Average Remaining Amortization Period	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Finite-lived intangible assets:
Developed technology	2.2 years	$	13,200	$	(7,339)	$	5,861
Customer relationships	6.3 years	7,507		(2,424)		5,083
Trade name	0.0 years	320		(320)		—
Launched IPR&D assets	4.0 years	960		(192)		768
Total finite-lived intangible assets		$	21,987	$	(10,275)	$	11,712
Indefinite-lived intangible assets:
Trade name – website domain	Indefinite	2,231		—		2,231
Total indefinite-lived intangible assets		2,231		—		2,231
Total intangible assets		$	24,218	$	(10,275)	$	13,943


	As of December 31, 2021
	Weighted Average Remaining Amortization Period	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Finite-lived intangible assets:
Developed technology	3.0 years	$	13,200	$	(5,250)	$	7,950
Customer relationships	7.0 years	7,410		(1,696)		5,714
Trade name	0.0 years	320		(320)		—
Launched IPR&D assets	5.0 years	960		—		960
Total finite-lived intangible assets		$	21,890	$	(7,266)	$	14,624
Indefinite-lived intangible assets:
Trade name – website domain (forge.com)	Indefinite	2,202		—		2,202
Total indefinite-lived intangible assets		2,202		—		2,202
Total intangible assets		$	24,092	$	(7,266)	$	16,826

Amortization expense related to finite-lived intangible assets was included in depreciation and amortization in the accompanying unaudited condensed consolidated statements of operations for the three and nine months ended September 30, 2022 and 2021. Amortization expense related to finite-lived intangible assets for the three and nine months ended September 30, 2022 was $1.0 million and $3.0 million, respectively. Amortization expense related to finite-lived intangible assets for the three and nine months ended September 30, 2021 was $1.2 million and $3.7 million, respectively.

The table below presents estimated future amortization expense for finite-lived intangible assets as of September 30, 2022 (in thousands):


	Amount

Remainder of 2022	$	1,178
2023	3,969
2024	3,272
2025	802
2026	754
Thereafter	1,737
Total	$	11,712