Markforged Holding Corporation Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Goodwill and Intangible Assets

Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Note 7. Goodwill and Intangible Assets

The following tables summarize the Company’s goodwill and intangible assets, all of which are related to the acquisitions of Teton Simulation Software in April 2022 and Digital Metal AB in August 2022 (in thousands):


(in thousands)	Goodwill
December 31, 2021	$	—
Acquisition of Teton Simulation Software		4,711
Acquisition of Digital Metal		25,770
Foreign currency translation		635
December 31, 2022	$	31,116
Foreign currency translation		(1,649	)
Goodwill impairment		(29,467	)
December 31, 2023	$	—


		December 31, 2023							December 31, 2022
	Estimated Useful Life	Gross Carrying Value		Accumulated Amortization			Net Book Value		Gross Carrying Value		Accumulated Amortization			Net Book Value
Acquired technology	7 - 20 years	$	16,800	$	(970	)	$	15,830	$	16,800	$	(97	)	$	16,703
Customer relationships	9 years		560		(83	)		477		560		(19	)		541
Trade names	1 year		90		(90	)		—		90		(27	)		63
Foreign currency translation			848		(27	)		821		322		(3	)		319
Intangible Assets, net		$	18,298	$	(1,170	)	$	17,128	$	17,772	$	(146	)	$	17,626

The Company recognized the following amortization expense to cost of revenue and operating expense during the years ended December 31, 2023 and 2022.


	Year Ended December 31,
	2023		2022
Cost of revenue	$	877	$	97
Operating expenses		147		49
Total	$	1,024	$	146

Revenue is the basis for the economic pattern used to determine the amortization schedule of developed technology and customer relationships. Trade name intangible amortization is based on the term in which the Company anticipates using the asset. The estimated future amortization expense for amortizable assets to be recognized is as follows as of December 31, 2023 (in thousands):


2024	$	1,524
2025		2,071
2026		2,286
2027		2,036
2028		1,655
Thereafter		7,556
Total	$	17,128