Redeemable Noncontrolling interest

6 Months Ended

Jun. 30, 2022

(17) Redeemable Noncontrolling interest

In connection with the 93.75% acquisition of Kumovis on April 1, 2022, as discussed in Notes 1 and 2, the Company recorded a redeemable non-controlling interest (RNCI). The RNCI represents noncontrolling shareholders’ interest in Kumovis which is controlled but not wholly owned by 3D Systems and for which 3D Systems obligation to redeem the minority shareholders’ interest is governed by a put/call relationship. Subsequent to the initial measurement at fair value, which is currently in process as part of business combination accounting, the RNCI is recorded at the greater of its redemption value or its’ carrying value at the end of each reporting period. If the RNCI is carried at its redemption value, the difference between the redemption value and the carrying value would be adjusted at the end of each reporting period through additional paid in capital. The Company will also perform a quarterly assessment to determine if the aforementioned redemption value exceeds the fair value of the RNCI. If the redemption value of the RNCI exceeds its fair value, the excess will reduce the net income attributable to 3D Systems shareholders.

The following table shows changes in the RNCI related to the acquisition of Kumovis:


	Six Months Ended June 30,
(in thousands)	2022		2021
Balance at January 1, 2022	$	—	$	—
Fair value at the date of acquisition (1)	2,418		—
Net Loss	(37)		—
Translation Adjustments	(232)		—
Balance at June 30, 2022	$	2,149	$	—

(1) Fair value as the date of acquisition is an estimate. The fair value of the RNCI is currently being determined as part of the business combination accounting