| Goodwill and Intangible Assets |
Note 7.
Goodwill and Intangible Assets
The
changes in goodwill during the three months ended March 31, 2026 are as follows (in thousands):
| Balance at December 31, 2025 | |
$ | 55,573 | |
| LSI acquisition | |
| 86,502 | |
| NuCrypt acquisition | |
| 4,436 | |
| Balance at March 31, 2026 | |
$ | 146,511 | |
The composition of intangible assets, net, is as follows (in thousands):
| | |
March 31, 2026 | | |
December 31, 2025 | |
| | |
Gross
Carrying
Amount | | |
Accumulated
Amortization | | |
Net
Carrying
Amount | | |
Gross
Carrying
Amount | | |
Accumulated
Amortization | | |
Net Carrying
Amount | |
| Website domain name and trademark | |
$ | 1,009 | | |
$ | (774 | ) | |
$ | 235 | | |
$ | 1,009 | | |
$ | (724 | ) | |
$ | 285 | |
| Technology and licensed patents | |
| 12,731 | | |
| (6,972 | ) | |
| 5,759 | | |
| 12,731 | | |
| (6,516 | ) | |
| 6,215 | |
| Customer relationships | |
| 647 | | |
| (15 | ) | |
| 632 | | |
| - | | |
| - | | |
| - | |
| Developed technology | |
| 9,995 | | |
| (239 | ) | |
| 9,756 | | |
| - | | |
| - | | |
| - | |
| Tradename | |
| 2,906 | | |
| (97 | ) | |
| 2,809 | | |
| - | | |
| - | | |
| - | |
| Total | |
$ | 27,288 | | |
$ | (8,097 | ) | |
$ | 19,191 | | |
$ | 13,740 | | |
$ | (7,240 | ) | |
$ | 6,500 | |
The
Company recorded amortization expense of the Company’s intangible assets of $0.9 million and $0.8 million during the three months
ended March 31, 2026 and 2025, respectively. The Company expects future amortization expense to be the following (in thousands):
| | |
Amortization | |
| 2026 (remaining nine months) | |
$ | 3,091 | |
| 2027 | |
| 4,004 | |
| 2028 | |
| 3,920 | |
| 2029 | |
| 2,859 | |
| 2030 | |
| 2,101 | |
| Thereafter | |
| 3,216 | |
| Total | |
$ | 19,191 | |
|