8.
Goodwill and Intangible Assets

There have been no changes in the carrying amount of goodwill since its recognition in 2015. In conjunction with our organizational realignment in 2024, we allocated goodwill among our two reporting units using a relative fair value approach. Goodwill allocated to the MRD and Immune Medicine reporting units as of December 31, 2025 was $96.4 million and $22.6 million, respectively.

Intangible assets subject to amortization as of December 31, 2025 and 2024 consisted of the following (in thousands):

 

 

 

December 31, 2025

 

 

 

Gross Carrying Amount

 

 

Accumulated Amortization

 

 

Net Carrying Amount

 

Acquired developed technology

 

$

20,000

 

 

$

(18,307

)

 

$

1,693

 

Purchased intellectual property

 

 

325

 

 

 

(292

)

 

 

33

 

Balance at December 31, 2025

 

$

20,325

 

 

$

(18,599

)

 

$

1,726

 

 

 

 

December 31, 2024

 

 

 

Gross Carrying Amount

 

 

Accumulated Amortization

 

 

Net Carrying Amount

 

Acquired developed technology

 

$

20,000

 

 

$

(16,641

)

 

$

3,359

 

Purchased intellectual property

 

 

325

 

 

 

(259

)

 

 

66

 

Balance at December 31, 2024

 

$

20,325

 

 

$

(16,900

)

 

$

3,425

 

 

The developed technology was acquired in connection with our acquisition of Sequenta, Inc. in 2015. The remaining balance of the acquired developed technology and the purchased intellectual property is expected to be amortized over the next 1.0 year, approximately.

As of December 31, 2025, expected future amortization expense for intangible assets was as follows (in thousands):

 

 

2026

 

$

1,699

 

2027

 

 

27

 

Total future amortization expense

 

$

1,726

 

Historical Timeline

Fiscal YearFiled
2025Feb 26, 2026Showing above
2024Mar 3, 2025
2023Feb 29, 2024
2022Feb 14, 2023
2021Feb 15, 2022
2020Feb 24, 2021
2019Feb 26, 2020

About Goodwill & Intangibles Disclosures

Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.

Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.