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)

3 Months Ended

Mar. 31, 2023

The goodwill activity is as follows (in thousands):


	March 31,		December 31,
	2023		2022
Balance, beginning of year	$	112,955	$	639,301
Foreign currency translation adjustment		616		(26,940)
Measurement period adjustments		—		(606)
Goodwill impairment		—		(498,800)
Balance, end of period	$	113,571	$	112,955

Schedule of intangible assets

Intangible assets consisted of the following (in thousands):


		March 31, 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	8.3	$	196,996	$	44,502	$	152,494	$	196,367	$	36,919	$	159,448
Trade name	10.1		12,464		2,789		9,675		12,459		2,374		10,085
Customer relationships	9.6		68,199		20,270		47,929		67,915		17,663		50,252
Capitalized software	0.2		518		500		18		518		473		45
Total intangible assets		$	278,177	$	68,060	$	210,117	$	277,259	$	57,429	$	219,830

Schedule of amortization expenses

During the three months ended March 31, 2023 and 2022, the Company recognized the following amortization expense (in thousands):


	Statement of	Three Months Ended March 31,
Category	Operations Line Item	2023		2022
Acquired technology	Cost of Sales	$	6,927	$	5,990
Acquired technology	Research and Development		553		443
Trade name	General and Administrative		415		422
Customer relationships	Sales and Marketing		2,520		2,902
Capitalized software	Research and Development		27		27
		$	10,442	$	9,784

Schedule of future amortization expense

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


	Amortization Expense
2023	$	31,339
2024		41,873
2025		39,370
2026		29,324
2027		21,083
2028 and after		47,128
Total intangible amortization	$	210,117

- Definition

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

+ References

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+ Details