Goodwill and Other Intangible Assets
Goodwill includes the cost of acquired businesses in excess of the fair value of the tangible and other intangible net assets acquired. The carrying amount of goodwill was $8,327 thousand as of December 31, 2025 and 2024, respectively.
Intangible assets, excluding goodwill, consist of trademarks, developer technology, patents, distributor relationships, and non-compete agreements, with estimated useful lives ranging from 5 to 10 years. Intangible assets are amortized on a straight-line basis. The total weighted-average amortization period for all amortizable intangible assets is 8.5 years. The weighted average amortization period for trademarks, the most significant intangible asset, is 7 years.
Intangible assets at December 31, were as follows (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 2025 | | 2024 |
| Gross Carrying Value | | Accumulated Amortization | | Net Carrying Value | | Gross Carrying Value | | Accumulated Amortization | | Net Carrying Value |
| Trademarks | $ | 2,500 | | | $ | (1,708) | | | $ | 792 | | | $ | 2,500 | | | $ | (1,458) | | | $ | 1,042 | |
| Non-compete agreement | 640 | | | (640) | | | — | | | 640 | | | (640) | | | — | |
| Others | 440 | | | (428) | | | 12 | | | 440 | | | (424) | | | 16 | |
| $ | 3,580 | | | $ | (2,776) | | | $ | 804 | | | $ | 3,580 | | | $ | (2,522) | | | $ | 1,058 | |
Amortization of intangible assets, net, excluding goodwill, recorded in Selling, administrative and engineering expense on the consolidated statements of operations and comprehensive loss was $254 thousand, $289 thousand and $462 thousand for the years ended December 31, 2025, 2024 and 2023, respectively. Future amortization of the Company's intangible assets as of December 31, 2025 is as follows (in thousands):
| | | | | |
| 2026 | $ | 254 | |
| 2027 | 254 |
| 2028 | 254 |
| 2029 | 42 |
| 2030 | — | |
| $ | 804 | |
The Company assesses for impairment of intangible assets with definite lives only if events occur that indicate that the carrying amount of an intangible asset may not be recoverable. The Company assesses goodwill for impairment annually, or more frequently if events occur that indicate an asset may be impaired.
For goodwill, the reporting units used in assessing impairment are the same as the Company’s two operating segments and reportable segments as described in Note 16, Reportable Segments and Geographic Information. The Company’s assessment for impairment of goodwill utilized a discounted cash flow analysis and a guideline public company market approach to determine the fair value of the reporting unit for comparison to the corresponding carrying value, and a reconciliation of the Company’s concluded values for each reporting unit to the Company’s market capitalization. Based upon the Company’s annual goodwill impairment analyses, the Company concluded there were no impairments to goodwill for any periods presented.