Goodwill and Intangible Assets

9 Months Ended

Sep. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

A reporting unit is the level at which goodwill is tested for impairment, and is defined as an operating segment or one level below an operating segment, if certain criteria are met. Under its current corporate structure, the Company has one operating segment and eight reporting units.

Goodwill

The following table summarizes changes in the carrying amount of goodwill (in thousands):


Balance as of December 31, 2022	$	37,775
Impairment losses (a)	(10,712)
Goodwill acquired during the year (a)	13,020
Measurement period adjustments	(2,308)
Effect of change in foreign currency exchange rates	(521)
Balance as of September 30, 2023	$	37,254

(a) Refer to Note 4 for discussion of VIA acquisition.

Intangible Assets

The following tables summarize information regarding amortizing and indefinite lived intangible assets (in thousands):


	September 30, 2023
	Weighted Average Remaining Useful Life (in years)	Intangible before impairment		Accumulated amortization		Accumulated impairment charge		Net balance
Definite lived intangible assets*
Patents, trademarks and brands	21.1	$	25,980	$	(1,628)	$	(11,030)	$	13,322
Customer relationships	13.0	13,745		(1,674)		—		12,071
Licenses	3.7	105		(28)		—		77

Software	2.6	132		(68)		—		64
Technology	6.5	122,178		(14,401)		(93,356)		14,421
Total		162,140		(17,799)		(104,386)		39,955
Indefinite lived intangible assets

Website name		25		—		—		25
Total		$	162,165	$	(17,799)	$	(104,386)	$	39,980


	December 31, 2022
	Gross carrying amount		Accumulated amortization		Accumulated impairment charge		Net balance
Definite lived intangible assets*
Patents, trademarks and brands	$	14,734	$	(660)	$	—	$	14,074
Customer relationships	13,937		(824)		—		13,113
Licenses	141		(16)		—		125

Software	2,981		(667)		(2,299)		15
Technology	18,225		(1,955)		—		16,270
Total	50,018		(4,122)		(2,299)		43,597
Indefinite lived intangible assets
Website name	25		—		—		25
Total	$	50,043	$	(4,122)	$	(2,299)	$	43,622

*excludes intangible assets fully amortized or written off in prior period

Management has concluded that VIA will not achieve its previous production and sales goals as the business's engineering and operations functions have been temporarily paused due to a lack of capital to invest in the next phases of development and manufacturing. As a result, the Company recorded an impairment charge of $104.4 million of intangible assets for both the three and nine months ended September 30, 2023.

Amortization expense relating to intangible assets was $5.3 million and $1.2 million for the three month ended September 30, 2023 and 2022, respectively and $14.4 million and $2.9 million for the nine months ended September 30, 2023 and 2022, respectively.

The following table summarizes the expected amortization expense for the following years (in thousands):


	Amortization to be recognized
2023 (excluding the nine months ended September 30, 2023)	$	1,013
2024	4,053
2025	4,044
2026	3,913
2027	3,876
2028 and thereafter	23,056
Total	$	39,955