Goodwill and Intangible Assets

6 Months Ended

Jun. 30, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Goodwill and Intangible Assets

There were no changes in goodwill during the three and six months ended June 30, 2024 and 2023.

As of June 30, 2024 intangible assets were classified as follows:

		June 30, 2024
Intangible assets:	Weighted Average Amortization Period (in years)	Gross Carrying Value		Accumulated Amortization		Net Carrying Value
		(in thousands)
Developed technology	5	$	800	$	(587)	$	213
Customer relationships	5	90		(82)		8
Non-compete agreements	5	20		(15)		5
Licensed IP	5	4,979		(249)		4,730
Total intangible assets		$	5,889	$	(933)	$	4,956

		December 31, 2023
Intangible assets:	Weighted Average Amortization Period (in years)	Gross Carrying Value		Accumulated Amortization		Net Carrying Value
		(in thousands)
Developed technology	5	$	2,660	$	(2,367)	$	293
Customer relationships	5	2,416		(2,374)		42
Non-compete agreements	5	179		(172)		7
Total intangible assets		$	5,255	$	(4,913)	$	342

On April 11, 2024, the Company amended and reinstated its license agreement to offer semiconductor intellectual property (“SIP”) developed in partnership with NXP (the “NXP IP”) for total cash consideration of $6.0 million, to be paid over 5 years. The NXP IP has a net book value of $4.7 million as of June 30, 2024 and a useful life of 5 years, which is the length of the license agreement. The Company recorded a corresponding vendor financing obligation related to the license agreement with NXP. See Note 7, Debt and Financing Obligations, for further discussion.

Amortization expense for intangible assets was $0.3 million and $0.4 million during the three and six months ended June 30, 2024, respectively, of which $0.2 million was recognized in cost of revenue for each of the three and six months ended June 30, 2024, with the remainder recognized in research and development expense in the Company’s condensed consolidated statement of income (loss). Amortization expense for intangible assets was $0.1 million and $0.2 million during the three and six months ended June 30, 2023, respectively, all of which was recognized in research and development expense on the Company’s condensed consolidated statement of income (loss).

As of January 1, 2024, the Company removed the carrying value of $4.3 million of fully amortized intangible assets which at time of removal had nil net book value.

As of June 30, 2024, estimated future amortization expense for the intangible assets reflected above was as follows:

Year Ending December 31,
	Amount
	(in thousands)
Remainder of 2024	$	587
2025	1,132
2026	996
2027	996
2028	996
Thereafter	249
Total net carrying value of intangible assets	$	4,956