Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2021

Goodwill And Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

(16)Goodwill and Intangible Assets

The following tables summarize the Company’s intangible assets (dollars in thousands):

	December 31, 2021
	Weighted average amortization period in years		Gross carrying amount		Accumulated amortization		Net carrying amount
Intangible Assets
Amortizing intangible assets:
Customer Relationships		15	$	37,139	$	674	$	36,465
Trade Names		9		973		147		826
Developed Technology		4		1,502		605		897
Vendor Relationships		15		1,404		226		1,178
Database		5		2,400		30		2,370
Total intangible assets			$	43,418	$	1,682	$	41,736

	December 31, 2020
	Weighted average amortization period in years		Gross carrying amount		Accumulated amortization		Net carrying amount
Intangible Assets
Amortizing intangible assets:
Non Compete		2	$	106	$	106	$	—
Customer Relationships		1		539		512		27
Trade Names		6		173		141		32
Developed Technology		3		762		438		324
Vendor Relationships		15		1,404		135		1,269
Total intangible assets			$	2,984	$	1,332	$	1,652

We evaluate property and equipment and tangible and intangible long-lived assets for impairment. During 2021 and 2020, no impairments were recorded on our property and equipment and tangible and intangible long-lived assets. During 2021, no impairments were recorded on our intangible assets. During 2020, we recognized $0.1 million of impairment related to an intangible asset (a tradename) that Xometry ceased using in our U.S. reporting unit and wrote down the tradename to zero, its estimated fair value. The Company’s estimate of fair value considered discounted future cash flows associated with future use of the tradename.

The following tables provides a roll forward of the carrying amount of goodwill (in thousands):

	2021			2020
Balance as of January 1:
Gross goodwill	$	3,907		$	3,907
Accumulated impairments		(3,074	)		(1,719	)
Net goodwill as of January 1,		833			2,188
Goodwill acquired during the year		253,839			—
Impact of foreign exchange		—			154
Impairment expense		—			(1,509	)
Net goodwill as of December 31,	$	254,672		$	833

During 2020 our goodwill impairment analysis indicated that a certain reporting unit with goodwill attributed to it had a carrying amount which exceeded its fair value. The underperformance of the reporting unit relative to its expected performance drove the decline in the fair value of the reporting unit. As a result, during the year ended December 31, 2020, Xometry recorded a pretax charge to reduce the carrying value of goodwill by $1.5 million. As of December 31, 2021 and 2020, Xometry’s goodwill of $254.7 million is part of Xometry’s U.S. operating segment.

Aggregate amortization expense for amortizing intangibles assets was $0.5 million and $0.8 million for the years ended December 31, 2021 and 2020, respectively. As of December 31, 2021, estimated amortization expense for the next five years is: $3.4 million in 2022, $3.3 million in 2023, $3.2 million in 2024, $3.2 million in 2025, and $3.2 million in 2026.

Amortization expense for the year ended December 31, 2021, 2020 and 2019 was as follows (in thousands):

	Year Ended December 31,
	2021		2020		2019
Sales and marketing	$	289		642	$	157
Operations and support		—		3		—
Product development		166		177		128
General and administrative		9		11		16
Total	$	464	$	833	$	301