8. Intangible Assets and Goodwill

Intangible assets consist of the following (in thousands):

In October 2025, the Company entered into a Settlement and Mutual Release Agreement (“Theravant Settlement”) with Theravant, from which it purchased the TheraClear devices in 2022, pursuant to which the Company was released from its outstanding obligations for contingent consideration. In the fourth quarter of 2025, the Company derecognized its liability for contingent consideration of $1.2 million and wrote off the related product technology intangible asset, which had a carrying value of $0.7 million. The transaction resulted in the recognition of a gain of $0.4 million, which is reflected within settlement gains in the consolidated statement of operations.

The Company recorded amortization expense of $1.2 million and $2.0 million during the years ended December 31, 2025 and 2024, respectively.

The following table summarizes the estimated future amortization expense for the above intangible assets for the next five years (in thousands):

Goodwill consists of the following (in thousands):

The Company recognized no goodwill impairment charge during the year ended December 31, 2025, and a goodwill impairment charge of $4.3 million during the year ended December 31, 2024 related to the dermatology recurring procedures segment primarily driven by a decline in projected cash flows, including revenues and profitability (see Note 2).