Goodwill and Intangible Assets, net

6 Months Ended

Jun. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

7. Goodwill and Intangible Assets, net

All goodwill is allocated to the Cell Engineering reporting unit and segment identified in Note 11. 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		592
Measurement period adjustments		(1,973	)
Balance as of June 30, 2023	$	58,829

During the six months ended June 30, 2023, the Company recognized a measurement period adjustment related to the Zymergen 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
June 30, 2023:
Developed technology	$	118,134	$	(16,717	)	$	101,417		9.0
Database		3,700		(371	)		3,329		6.3
Customer relationships		380		(166	)		214		1.1
Assembled workforce		190		(117	)		73		0.5
Total intangible assets	$	122,404	$	(17,371	)	$	105,033
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 $4.0 million and $0.8 million for the three months ended June 30, 2023 and 2022, respectively, and $8.3 million and $1.3 million for the six months ended June 30, 2023 and 2022, respectively. As of June 30, 2023, estimated future amortization expense for identifiable intangible assets is as follows (in thousands):


Remainder of 2023	$	7,911
2024		15,630
2025		15,505
2026		15,505
2027		12,431
Thereafter		38,051
Total	$	105,033