Veritone, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Goodwill and Intangible Assets, Net

Goodwill and Intangible Assets, Net

9 Months Ended

Sep. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets, Net

NOTE 7. GOODWILL AND INTANGIBLE ASSETS, NET

Goodwill

The carrying amount of goodwill was $78,388 as of September 30, 2023 and $46,498 as of December 31, 2022.


	Goodwill
Balance at December 31, 2022	$	46,498
Broadbean acquisition	$	31,947
Foreign currency translation/other		(57	)
Balance at September 30, 2023	$	78,388

Intangible Assets

The following table sets forth the Company’s finite-lived intangible assets resulting from business acquisitions and other purchases, which continue to be amortized:


			September 30, 2023							December 31, 2022
	Weighted Average Remaining Useful Life (in years)		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Software and technology		0.0	$	3,582	$	(3,582	)	$	—	$	3,582	$	(3,582	)	$	—
Licensed technology		0.0		500		(500	)		—		500		(500	)		—
Developed technology		1.9		44,100		(22,352	)		21,748		33,800		(15,512	)		18,288
Customer and supplier relationships		4.2		99,000		(32,703	)		66,297		81,800		(22,091	)		59,709
Noncompete agreements		0.0		800		(800	)		—		800		(800	)		—
Trademarks and trade names		3.3		2,300		(948	)		1,352		2,300		(633	)		1,667
Total		3.4	$	150,282	$	(60,885	)	$	89,397	$	122,782	$	(43,118	)	$	79,664

The following table presents future amortization of the Company’s finite-lived intangible assets as of September 30, 2023:


2023 (three months)	$	5,937
2024		23,972
2025		21,522
2026		16,589
2027		13,527
Thereafter		7,850
Total	$	89,397

Impairment Assessment

During the three months ended September 30, 2023, the Company experienced multiple adverse financial trends. As a result, the Company determined that an indicator of impairment was present and performed a quantitative goodwill impairment assessment as of September 30, 2023 using a market approach, which estimates fair value based on the Company’s market capitalization and an estimate of a reasonable range of values of a control premium. The Company determined that goodwill was not impaired, as the estimated fair value of the Company’s reporting units exceeded their carrying values. Additionally, as of September 30, 2023, the Company performed a quantitative analysis of the recoverability of each of the Company’s asset groups. The result of the analyses was that the assets were not impaired, as the expected cash flows exceeded the carrying value for each asset group.