Goodwill and Intangible Assets, net

3 Months Ended

Mar. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

6. Goodwill and Intangible Assets, net

All goodwill is allocated to the Cell Engineering reporting unit and segment identified in Note 10. Changes in the carrying amount of goodwill consisted of the following (in thousands):


Balance as of December 31, 2022	$	60,210
Impact of foreign currency translation		488
Measurement period adjustments		(1,973	)
Balance as of March 31, 2023	$	58,725

During the three months ended March 31, 2023, the Company recognized a measurement period adjustment related to the Zymergen, Inc. acquisition, which resulted in a decrease to goodwill of $2.2 million, an increase to accounts receivable of $1.8 million, and a decrease to accrued expenses and other current liabilities of $0.4 million. The adjustment was a result of updated information about

facts and circumstances that existed at the acquisition date regarding the collectability of an acquired accounts receivable and accrued expenses under a collaboration agreement. Additionally, $0.2 million was added to goodwill related to the Altar SAS acquisition.

Intangible assets, net consisted of the following (in thousands):


	Gross Carrying Value (1)		Accumulated Amortization (1)			Net Carrying Value		Weighted Average Amortization Period
March 31, 2023:
Developed technology	$	117,862	$	(12,954	)	$	104,908		9.1
Database		3,700		(239	)		3,461		6.5
Customer relationships		380		(119	)		261		1.4
Assembled workforce		190		(84	)		106		0.8
Total intangible assets	$	122,132	$	(13,396	)	$	108,736
December 31, 2022:
Developed technology	$	115,824	$	(8,825	)	$	106,999		9.4
Database		3,700		(107	)		3,593		6.8
Customer relationships		380		(71	)		309		1.6
Assembled workforce		190		(50	)		140		1.0
Total intangible assets	$	120,094	$	(9,053	)	$	111,041

(1) Gross carrying value and accumulated amortization include the impact of cumulative foreign currency translation adjustments.

Amortization expense was $4.3 million and $0.4 million for the three months ended March 31, 2023 and 2022, respectively. As of March 31, 2023, estimated future amortization expense for identifiable intangible assets is as follows (in thousands):


Remainder of 2023	$	11,858
2024		15,611
2025		15,487
2026		15,487
2027		12,412
Thereafter		37,881
Total	$	108,736