Goodwill and Intangible Assets, Net

3 Months Ended

Mar. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

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 March 31, 2023, 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 March 31, 2023. As a result, no impairment loss was recorded for the long-lived assets.

Additionally, as of March 31, 2023, 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 March 31, 2023 using the income approach in combination with sensitivity analysis and reconciliations to market capitalization. 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 March 31, 2023
	Weighted Average Remaining Amortization Period	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Finite-lived intangible assets:
Developed technology	1.6 years	$	13,200	$	(8,732)	$	4,468
Customer relationships	5.9 years	7,507		(2,929)		4,578
Trade name	0.0 years	320		(320)		—
Launched in-process research and development assets	3.5 years	960		(288)		672
Total finite-lived intangible assets		$	21,987	$	(12,269)	$	9,718
Indefinite-lived intangible assets:
Trade name - website domain	Indefinite	2,224		—		2,224
Total infinite-lived intangible assets		2,224		—		2,224
Total intangible assets		$	24,211	$	(12,269)	$	11,942


	As of December 31, 2022
	Weighted Average Remaining Amortization Period	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Finite-lived intangible assets:
Developed technology	1.8 years	$	13,200	$	(8,035)	$	5,165
Customer relationships	6.1 years	7,507		(2,677)		4,830
Trade name	0.0 years	320		(320)		—
Launched in-process research and development assets	3.7 years	960		(240)		720
Total finite-lived intangible assets		$	21,987	$	(11,272)	$	10,715
Indefinite-lived intangible assets:
Trade name - website domain	Indefinite	2,224		—		2,224
Total infinite-lived intangible assets		2,224		—		2,224
Total intangible assets		$	24,211	$	(11,272)	$	12,939

Amortization expense related to finite-lived intangible assets for the three months ended March 31, 2023 and 2022 was $1.0 million and $0.9 million, respectively, and was included in depreciation and amortization in the accompanying unaudited condensed consolidated statements of operations.

The table below presents estimated future amortization expense for finite-lived intangible assets as of March 31, 2023 (in thousands):


	Amount
Remainder of 2023	$	2,971
2024	3,462
2025	802
2026	754
2027	610
Thereafter	1,119
Total	$	9,718