Goodwill represents the excess of the purchase price over the fair value of the net tangible and identifiable intangible assets acquired in a business combination. Intangible assets resulting from the acquisitions of entities accounted for using the acquisition method of accounting are recorded at the estimated fair value of the assets acquired. Purchased intangibles include certain patents and license rights, 510(k) authorization by the FDA to sell a medical device and other intangible assets.

The Company’s goodwill and most intangibles at March 31, 2025 are the result of previous asset and business acquisitions. Finite-lived intangibles are amortized over their estimated useful lives based on expected future benefit.

In addition to the intangibles acquired, the Company capitalized certain patent and license rights as identified intangibles based on patent and license rights agreements entered into over the past several years. Additionally, the Company capitalized certain software development costs.



	Balance as of January 1, 2025		Additions		Accumulated Impairment Losses		Balance as of March 31, 2025
	(in thousands)
Goodwill	$	1,209	$	—	$	—	$	1,209



	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Estimated Useful Lives
	(in thousands)						(in years)
Patents and license rights	$	2,033	$	(1,530)	$	503	7-12
Customer relationships	3,530		(2,032)		1,498		4-10
510(k) authorization	567		(354)		213		15
Developed technology	62		(62)		—		10
Capitalized software development costs	14,241		(5,574)		8,667		2-5
Other	183		(91)		92		2-5
Capitalized software development costs not yet amortized	152		—		152
Patents and license rights not yet amortized	441		—		441
Total intangibles other than goodwill	$	21,209	$	(9,643)	$	11,566



	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Estimated Useful Lives
	(in thousands)						(in years)
Patents and license rights	$	2,033	$	(1,509)	$	524	7-12
Customer relationships	3,466		(1,997)		1,469		4-10
510(k) authorization	567		(345)		222		15
Developed technology	62		(62)		—		10
Capitalized software development costs	13,559		(4,839)		8,720		2-5
Other	183		(91)		92		2-5
Capitalized software development costs not yet amortized	215		—		215
Patents and license rights not yet amortized	441		—		441
Total intangibles other than goodwill	$	20,526	$	(8,843)	$	11,683

The amortization expense associated with intangible assets was $0.8 million and $0.3 million for each of the three months ended March 31, 2025 and 2024, respectively. Non-product related amortization is recorded in SG&A while product related amortization is recorded in cost of revenue.

As of March 31, 2025, the amortization expense related to identifiable intangible assets, with definite useful lives, in future periods is expected to be as follows:



Year Ending December 31,	Amortization Expense
	(in thousands)
2025 (remaining)	$	2,332
2026	2,655
2027	2,192
2028	1,882
2029	898
Thereafter	1,014
Total expected future amortization expense	$	10,973

The Company evaluates the recoverability of goodwill and indefinite-lived intangible assets annually and whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. During the year ended December 31, 2024, there was no impairment of goodwill or intangible assets based on the qualitative assessments performed by the Company. As of March 31, 2025, no triggering events have occurred which would indicate that the acquired intangible asset values may not be recoverable.