Intangible Assets and Goodwill

12 Months Ended

Dec. 31, 2021

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, 2021 are as follows (in thousands):

	Weighted Average	Gross Carrying		Accumulated
	Amortization Period	Amount		Amortization		Total
Acquired technology	13 years	$	45,530	$	(5,392)	$	40,138
Customer relationship, backlog & trademark	12 years		90,497		(1,427)		89,070
In process research and development	Indefinite		29,000		—		29,000
		$	165,027	$	(6,819)	$	158,208

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 relationship, backlog & trademark	6 years		890		(294)		596
In process research and development	Indefinite		29,000		—		29,000
		$	43,587	$	(4,336)	$	39,251

The change in the gross carrying amount of the Company’s acquired intangible assets from December 31, 2020 to December 31, 2021 was primarily due to the acquisitions of Applied Cryo and Frames. In addition, the Company acquired $928 thousand of intangible asssets from an asset acquisition of Protium, as well as changes in foreign currency translation.

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. Company expects to begin using this technology in 2022 with an expected useful life of 5 years. The future amortization expense is included in the estimated amortization expense table below.

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, 2021, 2020 and 2019 was $2.5 million, $1.1 million and $0.7 million, respectively.

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

2022		21,032
2023		17,072
2024		17,015
2025		22,029
2026 and thereafter		81,060
Total	$	158,208

Goodwill was $220.4 million and $72.4 million as of December 31, 2021 and 2020 respectively, which increased $148.5 million as a result of the Applied Cryo and Frames acquisitions, and decreased $0.5 million due to translation adjustments for Hypulsion and Frames goodwill.  There were no impairments during the years ended December 31, 2021, 2020 and 2019.