Intangible Assets, Net

12 Months Ended

Dec. 31, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Note 8. Intangible Assets, Net

The following is a summary of intangible assets with definite and indefinite lives (in thousands):


	Balance at December 31, 2024						Balance at December 31, 2023
	Gross		Accumulated Amortization		Net		Gross		Accumulated Amortization		Net
Definite Lived:
Customer relationships	$	9,180	$	6,839	$	2,341	$	9,180	$	5,691	$	3,489
Indefinite Lived:
Tradename(1)		10,750		—		10,750		10,750		—		10,750
Total intangible assets	$	19,930	$	6,839	$	13,091	$	19,930	$	5,691	$	14,239

(1) During the year ended December 31, 2023, a charge of $2.2 million was recorded on our indefinite lived tradename asset as such to reflect the impairment of the value ascribed to the indefinite lived tradename asset.

For each of the years ended December 31, 2024 and 2023 amortization expense was approximately $1.1 million.

The remaining weighted-average useful life of definite lived intangible assets is two years. The estimated future amortization expense of intangible assets with definite lives is as follows (in thousands):


	Amount
2025	$	1,148
2026		1,148
2027		45
Estimated future amortization expense of definite-lived intangible assets	$	2,341

There was no impairment of the indefinite lived tradename asset during the year ended December 31, 2024. In connection with the Company’s annual budgeting process, during the fourth quarter of 2023 the Company updated its 2024 budget to lower its financial projections in 2024 and beyond. Given the significance of the downward revisions to the Company’s forecast, primarily resulting from adverse industry and market conditions, an impairment test of Teknova’s indefinite lived tradename asset was performed as of December 31, 2023.

The fair value of the tradename was determined using the relief from royalty method. Significant assumptions under this method include forecasted revenues, royalty rate, discount rate, and terminal value. Fair values were determined using Level 3 inputs under ASC 820. Based on the impairment test performed, the Company determined that the Teknova tradename was impaired as of December 31, 2023. As a result, the Company recognized a $2.2 million non-cash impairment charge for the Teknova tradename during the fourth quarter ended December 31, 2023. The impairment charge represented the difference between the estimated fair value of the Company’s tradename and its carrying value. The carrying value of the indefinite lived tradename asset as of December 31, 2024 and 2023 was $10.8 million.

There was no impairment of definite lived intangible assets during the years ended December 31, 2024 and 2023.