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

Quarterly report pursuant to Section 13 or 15(d)

GOODWILL & INTANGIBLE ASSETS (Tables)

GOODWILL & INTANGIBLE ASSETS (Tables)

6 Months Ended

Jun. 30, 2023

The goodwill activity is as follows (in thousands):


	June 30,		December 31,
	2023		2022
Balance, beginning of year	$	112,955	$	639,301
Foreign currency translation adjustment		(214)		(26,940)
Measurement period adjustments		—		(606)
Goodwill impairment		—		(498,800)
Balance, end of period	$	112,741	$	112,955

Schedule of intangible assets

Intangible assets consisted of the following (in thousands):


		June 30, 2023						December 31, 2022
	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	8.2	$	197,022	$	51,990	$	145,032	$	196,367	$	36,919	$	159,448
Trade name	10.0		12,464		3,205		9,259		12,459		2,374		10,085
Customer relationships	9.4		68,123		22,805		45,318		67,915		17,663		50,252
Capitalized software	—		518		518		—		518		473		45
Total intangible assets		$	278,127	$	78,518	$	199,609	$	277,259	$	57,429	$	219,830

Schedule of amortization expenses

During the three and six months ended June 30, 2023 and 2022, the Company recognized the following amortization expense (in thousands):


	Statement of	Three Months Ended June 30,				Six Months Ended June 30,
Category	Operations Line Item	2023		2022		2023		2022
Acquired technology	Cost of Sales	$	6,928	$	5,950	$	13,855	$	11,940
Acquired technology	Research and Development		556		405		1,109		848
Trade name	General and Administrative		418		421		833		843
Customer relationships	Sales and Marketing		2,537		2,866		5,057		5,768
Capitalized software	Research and Development		18		27		45		54
		$	10,457	$	9,669	$	20,899	$	19,453

Schedule of future amortization expense

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


	Amortization Expense
2023 (remaining 6 months)	$	20,879
2024		41,878
2025		39,372
2026		29,322
2027		21,076
2028 and after		47,082
Total intangible amortization	$	199,609

- Definition

Tabular disclosure of goodwill by reportable segment and in total which includes a rollforward schedule.

+ References

Reference 1: http://www.xbrl.org/2003/role/exampleRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 55
-Paragraph 24
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482548/350-20-55-24

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (a)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 3: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (h)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 4: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 6: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (c)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (d)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (e)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 9: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (f)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 10: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1
-Subparagraph (g)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1

Reference 11: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 1A
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-1A

Reference 12: http://www.xbrl.org/2009/role/commonPracticeRef
-Topic 350
-SubTopic 20
-Name Accounting Standards Codification
-Section 50
-Paragraph 2
-Subparagraph (b)
-Publisher FASB
-URI https://asc.fasb.org//1943274/2147482573/350-20-50-2

+ Details