Intangible Assets

9 Months Ended

Sep. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets

Note 4 - Intangible Assets

The following table presents the components of net intangible assets for our Collaboration Products reporting segment (in thousands):

	As of September 30, 2022								As of December 31, 2021
	Gross Carrying Amount		Accumulated Amortization		Impairment Charges		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Developed technology	$	10,060	$	(6,049)	$	(3,525)	$	486	$	10,060	$	(4,537)	$	5,523
Trade names	2,410		(723)		(1,483)		204		2,410		(542)		1,868
Distributor relationships	310		(186)		(124)		—		310		(139)		171
Total	$	12,780	$	(6,958)	$	(5,132)	$	690	$	12,780	$	(5,218)	$	7,562

At each reporting period, we determine if there was a triggering event that may result in an impairment of our intangible assets. During the three and nine months ended September 30, 2022, we considered the declines in revenue for the Collaboration Products reporting segment and the decline in the Company’s market capitalization to be triggering events for an impairment test of intangible assets for this reporting unit. Based on the corresponding recoverability tests of the asset group for this reporting unit, it was determined that the carrying value exceeded the gross cash flows of the asset group. The recoverability test consisted of comparing the estimated undiscounted cash flows expected to be generated by those assets to the respective carrying amounts, and involves significant judgements and assumptions, related primarily to the future revenue and profitability of the assets. Based on the fair value of the asset group, which was determined using a market approach, we recorded impairment charges of $5,132,000 for the three and nine months ended September 30, 2022. Additionally, we re-evaluated the remaining useful lives of our amortizing intangible assets and, based on our current plan, we adjusted its remaining useful life to 2 years. Intangible assets with finite lives are amortized using the straight-line method over the estimated economic lives of the assets.

Related amortization expense was $580,000, $1,740,000, $597,000, and $1,791,000 for the three and nine months ended September 30, 2022 and 2021, respectively.

Amortization expense for each of the next five succeeding years will be as follows (in thousands):

Remainder of 2022	$	86
2023	345
2024	259
Total	$	690