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Consolidated Balance Sheet Components
 12 Months Ended
Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Consolidated Balance Sheet Components Consolidated Balance Sheet Components
Accounts Receivable, Net
Accounts receivable, net consisted of the following (in thousands):
SuccessorPredecessor
December 31, 2021December 31, 2020
Trade accounts receivable$11,404 $5,656 
Unbilled receivables5,448 2,590 
Other receivables1,500 2,312 
Total accounts receivable18,352 10,558 
Less: allowance for doubtful accounts(210)(150)
Total$18,142 $10,408 
Other Current Assets
Other current assets consisted of the following (in thousands):
SuccessorPredecessor
December 31, 2021December 31, 2020
Prepaid expenses $4,784 $4,631 
Customer consideration asset, current (Note 10)— 2,325 
Total$4,784 $6,956 
Property, Equipment and Software, Net
Property, equipment and software, net consisted of the following (in thousands):
SuccessorPredecessor
December 31, 2021December 31, 2020
Internal-use software$3,550 $20,343 
Purchased software17 110 
Office furniture and equipment19 609 
Other computer and network equipment 2,991 1,199 
Leasehold improvements277 479 
Property, equipment and software, gross6,854 22,740 
Less: accumulated amortization and depreciation(733)(2,783)
Total$6,121 $19,957 
For the periods from October 15, 2021 through December 31, 2021 and January 1, 2021 through October 14, 2021, and the year ended December 31, 2020, depreciation and amortization expense related to property, equipment and software amounted to approximately $0.8 million, $4.4 million and $2.7 million, respectively, of which $0.4 million, $3.6 million and $0.9 million, respectively, related to amortization expense of capitalized internal-use software placed in service.
ICE contributed to the Opco software obtained for internal use (Note 10). In connection with the Business Combination, this internal-use software was measured at fair value on the acquisition date and is included in the fair value of technology acquired by the Company (Note 4). As of December 31, 2020, the total amount capitalized was $19.8 million, $17.4 million of which had been placed in service.
We entered into a software license agreement that required a minimum usage fee of approximately $0.7 million annually for the contract term. The license was capitalized at the present value of minimum license payments over the contract term. We recognized a corresponding liability for the license payments. The software license was being amortized over the contract term. During the period from October 15, 2021 through December 31, 2021, we terminated the software license agreement. As a result of the termination, we recorded an impairment charge of approximately $1.2 million for the impairment of the related asset to a fair value of $0 and income of $1.3 million for the extinguishment of the related liability. The impairment charge and income are reflected as “Impairment of long-lived assets” and “Other income (expense), net”, respectively.
During 2020, various customizations were made to an application being developed by a third party for Bakkt Marketplace to expand the application’s functionality to meet our business requirements. The application was customized to include necessary features, and its testing began in the second half of 2020. The testing indicated that the desired results would not be met, which was identified as a triggering event for impairment analysis that concluded that the application would not provide a viable solution for its business requirements. As a result, the carrying value of the capitalized internal-use software was impaired as of December 31, 2020. We recorded an impairment charge of approximately $11.5 million to
reduce the carrying amount of internal-use software within property, equipment and software to a $0 fair value. The impairment charge is included in “Impairment of long-lived assets”.
During 2020, we terminated a software license agreement in accordance with the terms of the agreement. The license was related to the underlying clearing software utilized by Bakkt Clearing and had a five-year term. As a result of the termination, we recorded an impairment charge of approximately $1.4 million to write-off the license to a $0 fair value. The impairment charge is included in “Impairment of long-lived assets”.
During 2020, we purchased payment software to use in the roll-out of our alternative payment method. We ultimately built out our alternative payment method offering using API-based integrations instead of the acquired payment software. As such, we recorded an impairment charge of approximately $2.5 million to write-off the software to a $0 fair value that is included in “Impairment of long-lived assets”.
Deposits with Clearinghouse
Deposits with clearinghouse, current and noncurrent, consisted of the default resource contribution (Note 8). The default resource contribution amounted to approximately $15.2 million and $35.4 million as of December 31, 2021 and 2020, respectively.
On January 19, 2021, ICUS self-certified a rule change with the CFTC, reducing Bakkt Trust’s “skin-in-the-game” contribution to the ICUS guaranty fund to approximately $15.2 million from $35.4 million. Following the two-week self-certification period, in which no comments were received from the CFTC, ICUS proceeded with the reduction. On February 3, 2021, ICUS returned $20.2 million to Bakkt Trust. The default resource contribution includes less than $0.1 million of cash margins held with ICUS.
Other Assets
Other assets consisted of the following (in thousands):
SuccessorPredecessor
December 31, 2021December 31, 2020
Customer consideration asset, noncurrent (Note 10)$— $2,713 
Operating lease right-of-use assets (Note 17)11,239 1,799 
Finance lease right-of-use assets— 468 
Other2,640 598 
Total$13,879 $5,578 
Accounts Payable and Accrued Liabilities
Accounts payable and accrued liabilities consisted of the following (in thousands):
SuccessorPredecessor
December 31, 2021December 31, 2020
Accounts payable $10,646 $7,165 
Accrued expenses20,130 14,808 
Purchasing card payable17,698 12,683 
Salaries and benefits payable13,349 6,018 
Other2,267 2,241 
Total$64,090 $42,915 
Other Current Liabilities
Other current liabilities consisted of the following (in thousands):
SuccessorPredecessor
December 31, 2021December 31, 2020
Participation units liability, current (Note 11)$2,027 $— 
Current maturities of operating lease liability615 953 
Software license obligation, current— 675 
Current maturities of finance lease liability— 129 
Other1,075 186 
Total$3,717 $1,943 
Other Noncurrent Liabilities
Other noncurrent liabilities consisted of the following (in thousands):
SuccessorPredecessor
December 31, 2021December 31, 2020
Software license obligation, noncurrent$— $1,233 
Participation units liability, non-current (Note 11)2,027 870 
Operating lease liability, noncurrent (Note 17)10,647 847 
Finance lease liability, noncurrent— 369 
Total$12,674 $3,319