Note 7. Goodwill and Intangible Assets

The Company assesses recoverability of goodwill on an annual basis or when events or changes in circumstances indicate that the carrying value of goodwill may not be recoverable, such as a decline in stock price and market capitalization, or a decline in actual or forecasted operating results. The Company experienced a triggering event as of September 30, 2023 prompting impairment assessments of goodwill and long-lived assets, including definite-lived intangibles.

The Company assessed the definite-lived intangible assets and other long-lived assets for impairment by first determining whether the carrying value of the assets were recoverable by comparing their undiscounted net cash flows to the carrying value of the assets. The assets were determined to be recoverable, therefore the assessment did not result in an impairment of definite-lived intangible assets or other long-lived assets.

The Company estimated the fair value of the reporting unit using the market approach. The Company determined that the estimated fair value of the reporting unit was less than its carrying value, which resulted in a full goodwill impairment. The Company recorded a goodwill impairment charge of $29.5 million in the condensed consolidated statements of operations for the three and nine months ended September 30, 2023. This impairment was driven by the decline in the Company’s actual and forecasted operating results, as well as a decline in market capitalization.

Revenue is the basis for the economic pattern used to determine the amortization schedule of developed technology and customer relationships. Trade name intangible amortization is based on the term in which we anticipate continued use of the asset. The estimated future amortization expense for amortizable assets to be recognized is as follows as of September 30, 2023 (in thousands):