Markforged Holding Corporation Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Goodwill and Intangible Assets

Goodwill and Intangible Assets

6 Months Ended

Jun. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Note 7. Goodwill and Intangible Assets

The following tables summarizes 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, 2022	$	31,116
Foreign currency translation		(878	)
June 30, 2023	$	30,238


		June 30, 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		$	(537	)	$	16,263		$	16,800	$	(97	)	$	16,703
Customer relationships	9 years		560			(52	)		508			560		(19	)		541
Trade names	1 year		90			(70	)		20			90		(27	)		63
Foreign currency translation			(165	)		6			(159	)		322		(3	)		319
Intangible Assets, net		$	17,285		$	(653	)	$	16,632		$	17,772	$	(146	)	$	17,626

The Company recognized the following amortization expense to cost of revenue and operating expense during the three and six months ended June 30, 2023 and 2022:


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Cost of revenue	$	218	$	5	$	446	$	5
Operating expenses		36		—		85		—
Total	$	254	$	5	$	531	$	5

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 we anticipate continued use of the asset. The estimated future amortization expense for amortizable assets to be recognized is as follows as of June 30, 2023 (in thousands):


2023 (remaining six months)	$	490
2024		1,461
2025		1,975
2026		2,167
2027		1,921
Thereafter		8,618
Total	$	16,632