Intangible Assets and Goodwill
|6 Months Ended|
Jun. 30, 2022
|Goodwill and Intangible Assets Disclosure [Abstract]|
|Intangible Assets and Goodwill||
Note 6. Intangible Assets and Goodwill
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 the costs of patent acquisition as well as the costs of the defense of patents when we believe a successful defense of that patent is probable and that a successful defense increases the value of the patent. Patent costs are amortized on a straight-line basis over their estimated useful lives, which range from 13 to 20 years. Our intangible portfolio has an estimated weighted average useful life of 19 years.
Intangible assets, net, consisted of the following:
We report amortization expense primarily in research and development expense.
Goodwill is tested for impairment at the reporting unit level (operating segment or one level below an operating segment) on an annual basis each November 1st and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. As a result of the continuation of our sustained market capitalization level below our book equity value, we noted that there were indicators that an impairment loss may have occurred. We performed an interim qualitative impairment assessment related to the triggering event noted above, and determined that it was more likely than not that our goodwill and long-lived assets were not impaired.
Changes in the carrying amount of goodwill were as follows:
The entire disclosure for goodwill and intangible assets.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef