| Goodwill and Intangible Assets, net |
7. Goodwill and Intangible Assets, net Goodwill As of September 30, 2026, the carrying amount of goodwill was $10.2 million. The following is a roll forward of the Company’s goodwill balance (in thousands): | | | | | | Nine Months Ended September 30, | | | 2026 | Balances at beginning of period | | $ | — | Goodwill acquired - preliminary allocation | | | 11,428 | Goodwill acquired - measurement period adjustments | | | (497) | Foreign currency impact | | | (687) | Balances at end of period | | $ | 10,244 |
The Company evaluates goodwill at least annually on November 1, as well as whenever events or changes in circumstances suggest that the carrying amount may not be recoverable. Intangible Assets, net Intangible assets, net consists of the following (in thousands): | | | | | | | | | | | | | | | September 30, 2026 | | | Cost | | Accumulated Amortization | | Translation adjustments | | Net Book Value | Customer Relationships | | $ | 4,022 | | $ | (901) | | $ | (52) | | $ | 3,069 | Developed Technology | | | 47,270 | | | (6,383) | | | (565) | | | 40,322 | Trade Name | | | 910 | | | (186) | | | (49) | | | 675 | | | $ | 52,202 | | $ | (7,470) | | $ | (666) | | $ | 44,066 |
| | | | | | | | | | | | December 31, 2025 | | | Cost | | Accumulated Amortization | | Net Book Value | Customer Relationships | | $ | 3,122 | | $ | (559) | | $ | 2,563 | Developed Technology | | | 38,080 | | | (4,231) | | | 33,849 | | | $ | 41,202 | | $ | (4,790) | | $ | 36,412 |
Amortization expense for intangible assets was recorded in the following expense categories of its condensed consolidated statements of operations (in thousands): | | | | | | | | | | | | | | | | Three Months Ended September 30, | | Nine Months Ended September 30, | | | | 2026 | | 2025 | | 2026 | | 2025 | | Cost of revenue | | $ | 785 | | $ | 635 | | $ | 2,154 | | $ | 1,904 | | Selling, general and administrative expenses | | | 234 | | | 97 | | | 526 | | | 254 | | | | $ | 1,019 | | $ | 732 | | $ | 2,680 | | $ | 2,158 | |
Estimated future amortization expense for the intangible assets as of September 30, 2026 is as follows (in thousands): | | | | Remainder of 2026 | | $ | 1,016 | 2027 | | | 4,065 | 2028 | | | 3,755 | 2029 | | | 3,627 | 2030 | | | 3,627 | Thereafter | | | 27,976 | | | $ | 44,066 |
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