Intangible Assets and Goodwill

12 Months Ended

Dec. 31, 2020

Intangible Assets and Goodwill

Intangible Assets and Goodwill

10.  Intangible Assets and Goodwill

The gross carrying amount and accumulated amortization of the Company’s acquired identifiable intangible assets as of December 31, 2020 are as follows (in thousands):

	Weighted Average	Gross Carrying		Accumulated
	Amortization Period	Amount		Amortization		Total
Acquired technology	10 years	$	13,697	$	(4,042)	$	9,655
Customer relationships, Non-compete agreements, Backlog & Trademark	6 years		890		(294)		596
In process research and development	Indefinite		29,000		—		29,000
		$	43,587	$	(4,336)	$	39,251

The gross carrying amount and accumulated amortization of the Company’s acquired identifiable intangible assets as of December 31, 2019 are as follows (in thousands):

	Weighted Average	Gross Carrying		Accumulated
	Amortization Period	Amount		Amortization		Total
Acquired technology	9 years	$	8,244	$	(2,815)	$	5,429
Trademark	9 years		320		(210)		110
		$	8,564	$	(3,025)	$	5,539

The change in the gross carrying amount of the acquired technology from December 31, 2019 to December 31, 2020 was due to changes in acquisitions of UHG and Giner ELX, American Fuel Cell (AFC) milestone payments and foreign currency translation, as discussed below.

The Company’s in-process research and development is related to the development of the dry build process associated with electrolyzer stacks, as part of acquisition of Giner ELX. The related intangible asset is not currently amortized, as research and development is ongoing. Upon completion of the dry build process, amortization will commence based upon the estimated useful life of the underlying asset. See Note 5, “Acquisitions” for more details.

Also, in 2020, the Company acquired technology as part of the acquisition of UHG.  The technology relates to the chemical process of manufacturing liquid hydrogen from chlor-alkali waste stream. See Note 5 “Acquisitions”, for more details.

In 2019, the Company acquired intellectual property from EnergyOr for $1.5 million. In addition, the Company agreed to pay the sellers a royalty based on future sales of relevant applications, not to exceed $3.0 million, by May 22, 2025. These royalties are added to the intangible asset balance, as incurred. To date, no royalties have been earned.

As of December 31, 2020, as part of the agreement to acquire the intellectual property from AFC, the Company paid AFC milestone payments of $2.9 million.

Amortization expense for acquired identifiable intangible assets for the years ended December 31, 2020, 2019 and 2018 was $1.1 million, $0.7 million and $0.7 million, respectively.

Estimated amortization expense for subsequent years was as follows (in thousands):

2021		1,878
2022		1,478
2023		1,478
2024		1,456
2025 and thereafter		3,961
Total	$	10,251

Goodwill was $72.4 million and $8.8 million as of December 31, 2020 and 2019 respectively, which increased $62.6 million as a result of the Giner ELX and UHG acquisitions, and increased $900 thousand due to translation gain for Hypulsion goodwill.  There were no impairments during the fiscal years ended December 31, 2020 and 2019.