Desktop Metal, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

GOODWILL & INTANGIBLE ASSETS (Tables)

GOODWILL & INTANGIBLE ASSETS (Tables)

12 Months Ended

Dec. 31, 2021

The goodwill activity is as follows (in thousands):


		Goodwill
Balance at December 31, 2019	$	2,252
Balance at December 31, 2020	$	2,252
Acquisition of EnvisionTEC		195,688
Acquisition of Adaptive3D		35,113
Acquisition of Aerosint		14,581
Acquisition of Dental Arts Labs		8,839
Acquisition of A.I.D.R.O.		3,515
Acquisition of Brewer Dental		2,463
Acquisition of May Dental		6,782
Acquisition of ExOne		374,636
Foreign currency translation adjustment		(4,568)
Balance at December 31, 2021	$	639,301

Schedule of intangible assets

The following table sets forth the major categories of intangible assets and the weighted-average remaining useful lives for those assets that are not already fully amortized (in thousands):


		December 31, 2021						December 31, 2020
	Weighted Average	Gross				Net		Gross				Net
	Remaining Useful	Carrying		Accumulated		Carrying		Carrying		Accumulated		Carrying
	Lives (in years)	Amount		Amortization		Amount		Amount		Amortization		Amount
Acquired technology	9.2	$	198,631	$	11,421	$	187,210	$	10,193	$	1,091	$	9,102
Trade name	10.8		12,475		684		11,791		—		—		—
Customer relationships	10.8		69,127		6,296		62,831		—		—		—
Capitalized software	1.5		518		366		152		1,127		815		312
Total intangible assets		$	280,751	$	18,767	$	261,984	$	11,320	$	1,906	$	9,414

Schedule of amortization expenses

The Company recognized $17.5 million and $0.9 million of amortization expense for years ended December 31, 2021 and 2020, respectively, as follows (in thousands):


	Statement of	Amortization		Amortization
	Operations	Expense		Expense
Category	Line Item	December 31, 2021		December 31, 2020
Acquired technology	Cost of Sales	$	8,569	$	114
Acquired technology	Research and Development		1,761		646
Trade name	General and Administrative		685		—
Customer relationships	Sales and Marketing		6,339		—
Capitalized software	Research and Development		161		128
		$	17,515	$	888

Schedule of future amortization expense

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


	Amortization
2022	$	39,307
2023		42,206
2024		42,263
2025		39,747
2026		29,854
2027 and after		68,607
Total intangible amortization	$	261,984