Quarterly report pursuant to Section 13 or 15(d)

Intangible Assets and Goodwill

v3.22.1
Intangible Assets and Goodwill
3 Months Ended
Mar. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets and Goodwill

Note 6. Intangible Assets and Goodwill

Intangible Assets

Our recognized intangible assets consist of patents and the unpatented technological know-how of Danimer Catalytic Technologies. Our legacy patents were initially recorded at cost. The values of Danimer Catalytic Technologies' patents and unpatented know-how are inseparable and represent their acquisition-date fair value, less subsequent amortization.

We capitalize patent defense and application costs. Patent costs are amortized on a straight-line basis over their estimated useful lives, which range from 13 to 16 years. The Danimer Catalytic Technologies patents are amortized over its estimated 20 year life. Our intangible portfolio has an estimated weighted average useful life of 19.8 years.

Intangible assets, net, consisted of the following:

 

 

March 31,

 

 

December 31,

 

(in thousands)

 

2022

 

 

2021

 

Intangible assets, gross

 

$

93,344

 

 

$

93,244

 

Capitalized patent costs not yet subject to amortization

 

 

971

 

 

 

869

 

Intangible assets subject to amortization, gross

 

 

92,373

 

 

 

92,375

 

Accumulated amortization

 

 

(9,766

)

 

 

(8,585

)

Intangible assets subject to amortization, net

 

 

82,607

 

 

 

83,790

 

Total intangible assets, net

 

$

83,578

 

 

$

84,659

 

Amortization expense of $1.2 million and $0.1 million, respectively, during the three months ended March 31, 2022 and 2021 was included in research and development costs.

Goodwill

Changes in the carrying amount of goodwill were as follows:

 

 

March 31,

 

(in thousands)

 

2022

 

Balance at beginning of year

 

$

62,649

 

Adjustment of estimate of fair value of liabilities assumed related to Danimer Catalytic Technologies acquisition

 

 

14

 

Balance at end of year

 

$

62,663