As part of the IGI and Chronix acquisitions completed on January 31, 2020 and April 15, 2021, respectively, the Company acquired IPR&D and customer relationships (see Note 3). During the fourth quarter of 2024, the IPR&D balances were reassessed using the multi-period excess earnings method (“MPEEM”) approach and the results of the valuations noted that the carrying values of the DetermaIO and DetermaCNI IPR&D intangible assets were greater than the fair market values. Accordingly, the Company recorded impairments of $6.8 million and $35.1 million related to DetermaIO and DetermaCNI, respectively, as of December 31, 2024.

The MPEEM valuation approach is a discounted cash flow valuation technique and was used to determine the Level 3 fair values of the IPR&D. The significant unobservable inputs used related to DetermaIO as of December 31, 2024, included: (i) a discount period of 19.5 years, based on the expected life of patent, and (ii) a weighted average cost of capital rate of 29.0%, as well as certain assumptions about future cash flows. This valuation approach yielded a fair value of $2.9 million as of December 31, 2024. The significant unobservable inputs used related to DetermaCNI as of December 31, 2024, included: (i) a discount period of 19.5 years, based on the expected life of patent, and (ii) a weighted average cost of capital rate of 19.5%, as well as certain assumptions about future cash flows. This valuation approach yielded a fair value of $11.7 million as of December 31, 2024.

As of December 31, 2025, due to growing competitive pressure in the oncology market, although not abandoned, management does not foresee substantial near term investment in, or revenue generating opportunities from, DetermaIO and DetermaCNI. Due to this current market condition, the Company’s long range plan forecasts were updated, resulting in a significant reduction to anticipated future benefits derived from the Company’s IPR&D assets. The IPR&D balances were reassessed based on the updated long range plan using the MPEEM approach and the results of the valuations noted that the carrying values of the DetermaIO and DetermaCNI IPR&D intangible assets were greater than the fair market values, resulting in the full impairment of both assets. Accordingly, the Company recorded impairments of $2.9 million and $11.7 million related to DetermaIO and DetermaCNI, respectively, as of December 31, 2025.

The significant unobservable inputs used related to DetermaIO and DetermaCNI as of December 31, 2025, included: (i) a discount period of 15.0 years, based on the long range plan forecast, and (ii) a discount rate of 29.0%, as well as certain assumptions about future cash flows in the related long range plan forecast. This valuation approach yielded a fair value of zero for both DetermaIO and DetermaCNI as of December 31, 2025. See Note 2, “Intangible Assets” for additional IPR&D information.

Intangible assets, net, consisted of the following:


	December 31,
	2025			2024
	(In thousands)
Intangible assets:
Acquired IPR&D - DetermaIO (1)	$	—		$	2,900
Acquired IPR&D - DetermaCNI (2)		—			11,700

Intangible assets subject to amortization:
Acquired intangible assets - customer relationship		440			440
Total intangible assets		440			15,040
Accumulated amortization - customer relationship (3)		(440	)		(433	)
Intangible assets, net	$	—		$	14,607

(1)

See Note 3 for information on the IGI Merger.

(2)

See Note 3 for information on the Chronix Merger.

(3)

Amortization of intangible assets is included in “Cost of revenues – amortization of acquired intangibles” in the consolidated statements of operations because the intangible assets pertain directly to the revenues generated from the acquired intangibles.

Intangible asset amortization expense amounted to $7,000 and $88,000 for the years ended December 31, 2025 and 2024, respectively.