11. GOODWILL & INTANGIBLE ASSETS

There was no goodwill balance at September 30, 2024 and December 31, 2023. The goodwill activity is as follows (in thousands):

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Goodwill was fully impaired as of December 31, 2023. No impairment of goodwill has been recorded for the nine months ended September 30, 2024. During the three and nine months ended September 30, 2023, the Company recorded a goodwill impairment charge of $2.5 million related to the sale of Aerosint.

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The Company performed a quantitative assessment during its annual impairment review for 2023 as of October 1, 2023 and concluded that the fair value of the Company’s single reporting unit was not less than its carrying amount. Due to sustained declines in Company’s stock price and the stock prices of comparable companies, we performed a quantitative assessment as of December 31, 2023, utilizing a combination of the income and market approaches. The results of the quantitative analysis performed indicated that the carrying value of the reporting unit exceeded the fair value. As such, a goodwill impairment charge of $110.4 million was recorded. The Company recorded a total of $112.9 million in goodwill impairment charges during the year ended December 31, 2023.

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The Company estimated the fair value using a weighted average of the income and market approaches. Specifically, the discounted cash flow method was used under the income approach and the guideline public company and guideline merged and acquired company methods were used under the market approach. The significant assumptions used under the income approach include management’s forecasts of future revenues and EBITDA margins used to calculate projected future cash flows, discount rates, and the terminal growth rate. The terminal value is based on an exit revenue multiple which requires significant assumptions regarding the selections of appropriate multiples that consider relevant market trading data. The Company bases its estimates and assumptions on its knowledge of the additive manufacturing industry, recent performance, expectations of future performance and other assumptions the Company believes to be reasonable. The significant assumptions used under the market approach include the control premium and selection of comparable companies and comparable transactions. Comparable companies and transactions are chosen based on factors including industry classification, geographic region, product offerings, earnings growth and profitability.

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Intangible assets consisted of the following (in thousands):

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During the three and nine months ended September 30, 2024 and 2023, the Company recognized the following amortization expense (in thousands):

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The Company expects to recognize the following amortization expense (in thousands):

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