GOODWILL AND INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2024

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS

6. GOODWILL AND INTANGIBLE ASSETS:

Goodwill increased during the year ended December 31, 2024, due to the Company’s acquisition of Odyssey Semiconductor Technologies (“Odyssey”) (refer to Note 15, Acquisition, for details on the Company’s Odyssey acquisition). Changes in the carrying amount of goodwill as of the December 31, 2024 and 2023 are as follows:

(in thousands)	Goodwill
Balance at January 1, 2023	$	91,849
Goodwill acquired during the period		—
Balance at December 31, 2023		91,849
Goodwill acquired during the period		3,422
Ending balance at December 31, 2024	$	95,271

The $3.4 million of goodwill acquired in 2024, resulted from the purchase of Odyssey (see Note 15, Acquisition, for further details).

Intangible assets consist primarily of developed technology, in-process research and development, acquired licenses and domain name, and are reported net of accumulated amortization. In July 2024, the Company acquired the assets of Odyssey, a U.S. company and developer of vertical gallium-nitride (“GaN”) transistor technology, resulting in the addition of in-process research and development of $4.9 million.

The Company amortizes the cost of all intangible assets over the estimated useful life of the developed technology and technology licenses, which range from two to twelve years, with the exception of $4.9 million of in-process research and development which will commence amortization once development is completed and products are available for sale as well as $1.3 million paid to acquire an internet domain name. The Company does not expect the amortization of its in-process research and development to begin in 2025. The Company acquired the rights to the internet domain name www.power.com, the Company’s primary domain name; the cost to acquire the domain name has been recorded as an intangible asset and will not be amortized as it has an indefinite useful life.

Amortization of acquired intangible assets was approximately $1.3 million, $2.2 million and $2.4 million in the years ended December 31, 2024, 2023 and 2022, respectively. The Company does not believe there is any significant residual value associated with the following intangible assets:

	December 31, 2024						December 31, 2023
			Accumulated						Accumulated
(In thousands)	Gross		Amortization		Net		Gross		Amortization		Net
Domain name	$	1,261	$	—	$	1,261	$	1,261	$	—	$	1,261
In-process research and development		4,930		—		4,930		—		—		—
Developed technology		37,960		(36,492)		1,468		37,960		(35,459)		2,501
Technology licenses		1,926		(1,510)		416		1,926		(1,264)		662
Total intangible assets	$	46,077	$	(38,002)	$	8,075	$	41,147	$	(36,723)	$	4,424

The estimated future amortization expense related to definite-lived intangible assets at December 31, 2024, is as follows:

	Estimated
	Amortization
Fiscal Year	(In thousands)
2025	$	832
2026		687
2027		365
Total*	$	1,884

* Total excludes $4.9 million of in-process research and development which will be amortized upon completion of development over the estimated useful life of the technology.