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

3 Months Ended

Mar. 31, 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		74
March 31, 2023	$	31,190


		March 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	$	(322	)	$	16,478	$	16,800	$	(97	)	$	16,703
Customer relationships	9 years		560		(37	)		523		560		(19	)		541
Trade names	1 year		90		(50	)		40		90		(27	)		63
Foreign currency translation			394		(9	)		385		322		(3	)		319
Intangible Assets, net		$	17,844	$	(418	)	$	17,426	$	17,772	$	(146	)	$	17,626

The Company recognized amortization expense of $0.2 million and less than $0.1 million to costs of goods sold and operating expense, respectively, during the three months ended March 31, 2023. 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 March 31, 2023 (in thousands):


2023 (remaining nine months)	$	754
2024		1,495
2025		2,027
2026		2,231
2027		1,984
Thereafter		8,935
Total	$	17,426