Intangible assets are stated at amortized cost and consist of the following (amounts in thousands):


	June 30, 2026						December 31, 2025
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Internal-use software	$	8,978	$	(1,975)	$	7,003	$	7,942	$	(1,291)	$	6,651
Favorable acquired contracts	192		—		192		1,626		—		1,626
	$	9,170	$	(1,975)	$	7,195	$	9,568	$	(1,291)	$	8,277

Once a software application is placed in service, the Company amortizes its internal-use software by software application on a straight-line basis over its estimated economic life. The useful life for the Company’s internal-use software is five years.

During the six months ended June 30, 2026, the Company reclassified $1.4 million from favorable acquired contracts, included in intangible assets, net, to construction in progress, included in property and equipment, net, upon receipt of the related equipment because the favorable contract terms were realized through delivery of that equipment.

For the three and six months ended June 30, 2026, amortization expense from intangible assets was $0.3 million and $0.7 million, respectively, all of which was included in cost of revenue in the condensed consolidated statement of operations and comprehensive loss.

For the three and six months ended June 30, 2025, amortization expense from intangible assets was $0.2 million and $0.4 million, respectively, all of which was included in depreciation, amortization, and accretion in the condensed consolidated statement of operations and comprehensive loss.

Future amortization expense for internal-use software is estimated as follows (amounts in thousands):


	Amount
Remainder of 2026	$	683
2027	1,367
2028	1,367
2029	1,004
2030	439
Thereafter	—
Subtotal	4,860
Software projects in process	2,143
Total	$	7,003