Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2024

Goodwill and Intangible Assets

Goodwill and Intangible Assets

Note 7 – Goodwill, net and Intangible Assets, net

The Company’s intangible assets, net consists of the following (in thousands):

	Successor
	December 31, 2024
	Useful Life (years)	Gross Carrying Amount		Accumulated Amortization		Impairment		Net Carrying Amount
IPR&D	Indefinite	$	22,100	$	—		(15,131)	$	6,969
Developed technology	5.0		4,100		(353)		(3,747)		—
Total		$	26,200	$	(353)	$	(18,878)	$	6,969

Amortization of intangible assets was $0.4 million for the period from July 31, 2024 to December 31, 2024 (Successor). There was no amortization of intangible assets for the period from January 1, 2024 to July 30, 2024 (Predecessor).

For the period from January 1, 2024 to July 30, 2024 (Predecessor) and for the year ended December 31, 2023 (Predecessor), the Company determined that there was no impairment of indefinite-lived intangible assets. During the fourth quarter of 2024, the Company performed an impairment assessment on its indefinite lived intangible assets, and determined that as of December 31, 2024, the fair value of its intangible assets was less than the carrying amount. As a result, the Company recorded an $18.9 million impairment charge during the period from July 31, 2024 to December 31, 2024 (Successor). The impairment was driven by a sustained decline in the Company’s share price and market capitalization.

There were no intangible assets as of December 31, 2023 (Predecessor).

The following table presents the changes in goodwill (in thousands):

	Successor
	December 31, 2024
	Carrying Amount		Impairment		Net Carrying Amount
Goodwill	$	44,291	$	(30,324)	$	13,967

For the period from January 1, 2024 to July 30, 2024 (Predecessor) and for the year ended December 31, 2023 (Predecessor), the Company determined that there was no goodwill impairment. During the fourth quarter of 2024, the Company conducted its annual assessment of goodwill. During its assessment, the Company determined that as of December 31, 2024, its fair value was less than the carrying amount. As a result, the Company recorded a $30.3 million goodwill impairment charge during the period from July 31, 2024 to December 31, 2024 (Successor). The impairment was driven by a sustained decline in the Company’s share price and market capitalization.

There was no goodwill as of December 31, 2023 (Predecessor).