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

Quarterly report pursuant to Section 13 or 15(d)

GOODWILL & INTANGIBLE ASSETS

GOODWILL & INTANGIBLE ASSETS

3 Months Ended

Mar. 31, 2021

10. GOODWILL & INTANGIBLE ASSETS

The carrying amount of goodwill at March 31, 2021 and 2020 was $201.3 million and $2.3 million, respectively, and has been recorded in connection with the Company’s acquisitions. The goodwill activity is as follows:


(in thousands)
Balance at December 31, 2019	$	2,252
Balance at December 31, 2020	$	2,252
Acquisition of EnvisionTEC		199,056
Balance at March 31, 2021	$	201,308

The Company has no accumulated impairment losses on goodwill.

Intangible assets consisted of the following (in thousands):


				Accumulated		Balance
	Gross Value		Estimated Life	Amortization		March 31, 2021
Acquired technology	$	87,993	5 – 12 years	$	2,688	$	85,305
Trade name		8,600	13 years		81		8,519
Customer relationships		50,900	10 years		621		50,279
Total intangible assets	$	147,493		$	3,390	$	144,103

The Company recognized $2.3 million and $0.2 million of amortization expense during the three months ended March 31, 2021 and 2020, respectively. The Company expects to recognize $12.5 million of amortization expense for the remainder of 2021, and $16.7 million, $16.7 million, $16.5 million, and $16.0 million of amortization expense annually in the years ended December 31, 2022 through 2025. The weighted-average remaining amortization period is 9.3 years.