4. Goodwill and Intangible Assets
Goodwill
Goodwill for our modules business consisted of the following at December 31, 2025 and 2024 (in thousands):
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | December 31, 2024 | | Acquisitions (Impairments) | | Foreign Currency Translation Adjustments | | December 31, 2025 |
| Gross amount | | $ | 421,700 | | | $ | — | | | $ | 2,760 | | | $ | 424,460 | |
| Accumulated impairment losses | | (393,365) | | | — | | | — | | | (393,365) | |
| Total | | $ | 28,335 | | | $ | — | | | $ | 2,760 | | | $ | 31,095 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | December 31, 2023 | | Acquisitions (Impairments) | | Foreign Currency Translation Adjustments | | December 31, 2024 |
| Gross amount | | $ | 423,052 | | | $ | — | | | $ | (1,352) | | | $ | 421,700 | |
| Accumulated impairment losses | | (393,365) | | | — | | | — | | | (393,365) | |
| Total | | $ | 29,687 | | | $ | — | | | $ | (1,352) | | | $ | 28,335 | |
We performed our annual impairment analysis in the fourth quarters of 2025 and 2024. As permitted by ASC 350-20, we performed a qualitative assessment for our modules business in each respective period and concluded that it was not more likely than not that the fair value of the business was less than its carrying amount. Accordingly, a quantitative goodwill impairment test was not required in any period presented.
Intangible assets, net
The following tables summarize our intangible assets at December 31, 2025 and 2024 (in thousands):
| | | | | | | | | | | | | | | | | | | | |
| | December 31, 2025 |
| | | Gross Amount | | Accumulated Amortization | | Net Amount |
| Developed technology | | $ | 97,645 | | | $ | (92,333) | | | $ | 5,312 | |
| In-process research and development | | 43,159 | | | — | | | 43,159 | |
| Patents | | 10,500 | | | (7,964) | | | 2,536 | |
| Total | | $ | 151,304 | | | $ | (100,297) | | | $ | 51,007 | |
| | | | | | | | | | | | | | | | | | | | |
| | December 31, 2024 |
| | | Gross Amount | | Accumulated Amortization | | Net Amount |
| Developed technology | | $ | 97,645 | | | $ | (88,717) | | | $ | 8,928 | |
| In-process research and development | | 43,159 | | | — | | | 43,159 | |
| Patents | | 10,068 | | | (7,501) | | | 2,567 | |
| Total | | $ | 150,872 | | | $ | (96,218) | | | $ | 54,654 | |
Amortization of intangible assets was $4.1 million, $10.5 million, and $10.5 million for the years ended December 31, 2025, 2024, and 2023, respectively.
Estimated future amortization expense for our definite-lived intangible assets was as follows at December 31, 2025 (in thousands):
| | | | | | | | |
| | Amortization Expense |
| 2026 | | $ | 2,739 | |
| 2027 | | 2,639 | |
| 2028 | | 920 | |
| 2029 | | 536 | |
| 2030 | | 279 | |
| Thereafter | | 735 | |
| Total amortization expense | | $ | 7,848 | |
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.