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, 2022

The goodwill activity is as follows (in thousands):


		Goodwill
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
May Dental working capital adjustment		23
Foreign currency translation adjustment		(32,114)
Goodwill impairment		(229,500)
Balance at June 30, 2022	$	377,710

Schedule of intangible assets

Intangible assets consisted of the following (in thousands):


		June 30, 2022						December 31, 2021
	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	8.8	$	195,489	$	24,042	$	171,447	$	198,631	$	11,421	$	187,210
Trade name	10.5		12,452		1,524		10,928		12,475		684		11,791
Customer relationships	10.3		67,431		11,835		55,596		69,127		6,296		62,831
Capitalized software	1.0		518		420		98		518		366		152
Total intangible assets		$	275,890	$	37,821	$	238,069	$	280,751	$	18,767	$	261,984

Schedule of amortization expenses


	Statement of	Three Months Ended June 30,				Six Months Ended June 30,
Category	Operations Line Item	2022		2021		2022		2021
Acquired technology	Cost of Sales	$	5,950	$	2,319	$	11,940	$	3,410
Acquired technology	Research and Development		405		506		848		1,012
Trade name	General and Administrative		421		170		843		250
Customer relationships	Sales and Marketing		2,866		1,273		5,768		1,894
Capitalized software	Research and Development		27		45		54		90
		$	9,669	$	4,313	$	19,453	$	6,656

Schedule of future amortization expense

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


	Amortization Expense
2022 (remaining 6 months)	$	19,331
2023		41,451
2024		41,513
2025		39,029
2026		29,285
2027 and after		67,460
Total intangible amortization	$	238,069

- Definition

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

+ References

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+ Details