Balance Sheet Details | Balance Sheet Details Allowance for Doubtful Accounts (In thousands) Balance at Beginning of Period Provisions Write-offs, Net Balance at End of Period Three months ended March 31, 2022 $ 945 $ 20 $ — $ 965 Three months ended March 31, 2021 $ 137 $ 17 $ — $ 154 Inventories (In thousands) March 31, 2022 December 31, 2021 Raw materials $ 27,764 $ 25,733 Work-in-process 6,949 6,941 Finished goods 47,583 42,396 Inventories $ 82,296 $ 75,070 Prepaid Expenses and Other Current Assets (In thousands) March 31, 2022 December 31, 2021 Prepayments, advances and deposits $ 34,444 $ 25,140 Non-inventory production supplies 3,762 3,956 Recoverable taxes from Brazilian government entities 1,298 1,188 Other 3,698 3,229 Total prepaid expenses and other current assets $ 43,202 $ 33,513 Property, Plant and Equipment, Net (In thousands) March 31, 2022 December 31, 2021 Manufacturing facilities and equipment $ 69,126 $ 51,855 Leasehold improvements 48,483 45,780 Computers and software 9,481 9,174 Furniture and office equipment, vehicles and land 3,789 3,688 Construction in progress 89,656 48,032 220,535 158,529 Less: accumulated depreciation and amortization (95,271) (85,694) Property, plant and equipment, net $ 125,264 $ 72,835 During the three months ended March 31, 2022 and 2021, depreciation and amortization expense, including amortization of right-of-use assets under financing leases, was as follows: Three Months Ended March 31, (In thousands) 2022 2021 Depreciation and amortization expense $ 2,400 $ 2,114 Goodwill The changes in the carrying amount of goodwill were as follows: (In thousands) March 31, 2022 Balance at beginning of year $ 131,259 Acquisitions 7,666 Effect of currency translation adjustment (2,920) Ending balance $ 136,005 Additions to goodwill during the three months ended March 31, 2022 related to acquisitions completed during the period. See Note 7, "Acquisitions". Intangible Assets, Net During the three months ended March 31, 2022, the Company recorded $18.4 million of intangible assets which related to customer relationships, trademarks and trade names, branded products, and software as a result of the acquisitions completed during the period. See Note 7, "Acquisitions". The following table summarizes the components of intangible assets (in thousands, except estimated useful life): March 31, 2022 December 31, 2021 Amounts in thousands Estimated Useful Life Gross Accumulated Amortization Net Gross Accumulated Amortization Net Trademarks and trade names, and branded products 10 $ 25,704 $ (953) $ 24,751 $ 11,484 $ (496) $ 10,988 Customer relationships 5 - 16 8,638 (474) 8,164 8,197 (267) 7,930 Developed technology and software applications 5 - 12 23,003 (400) 22,603 19,962 (200) 19,762 Patents 17 600 (24) 576 600 (15) 585 Total intangible assets $ 57,945 $ (1,851) $ 56,094 $ 40,243 $ (978) $ 39,265 Amortization expense for intangible assets was $0.9 million for the three months ended March 31, 2022 and is included in general and administrative expenses. Total future amortization of intangible assets as of March 31, 2022 is as follows (in thousands): Amounts in thousands 2022 (remainder) $ 3,188 2023 5,875 2024 7,027 2025 7,177 2026 6,933 Thereafter 25,894 Total future amortization $ 56,094 Leases Operating Leases The Company has operating leases primarily for administrative offices, laboratory equipment and other facilities. The operating leases have remaining terms that range from 1 to 18 years, and often include one or more options to renew. These renewal terms can extend the lease term for an additional 1 to 5 years and are included in the lease term when it is reasonably certain that the Company will exercise the option. The operating leases are classified as ROU assets under operating leases on the Company's condensed consolidated balance sheets and represent the Company’s right to use the underlying asset for the lease term. The Company’s obligation to make operating lease payments is included in "Lease liabilities" and "Lease liabilities, net of current portion" on the Company's condensed consolidated balance sheets. Operating lease right-of-use assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The Company had $58.9 million and $32.4 million of right-of-use assets as of March 31, 2022 and December 31, 2021, respectively. Operating lease liabilities were $45.2 million and $27.5 million as of March 31, 2022 and December 31, 2021, respectively. During the three months ended March 31, 2022 and 2021, respectively, the Company recorded $3.7 million and $1.8 million of operating lease amortization that was charged to expense, of which $0.3 million and $0.2 million was recorded to cost of products sold. Because the rate implicit in each lease is not readily determinable, the Company uses its incremental borrowing rate to determine the present value of the lease payments. The Company has certain contracts for real estate and marketing which may contain lease and non-lease components which it has elected to treat as a single lease component. Information related to the Company's right-of-use assets and related lease liabilities were as follows: Three Months Ended March 31, 2022 2021 Cash paid for operating lease liabilities, in thousands $3,045 $1,185 Right-of-use assets obtained in exchange for new operating lease obligations, in thousands $18,759 $— Weighted-average remaining lease term 8.7 2.7 Weighted-average discount rate 19.0% 18.0% Financing Leases The Company has financing leases primarily for laboratory equipment. Assets purchased under financing leases are included in "Right-of-use assets under financing leases, net" on the condensed consolidated balance sheets. For financing leases, the associated assets are depreciated or amortized over the shorter of the relevant useful life of each asset or the lease term. Accumulated amortization of assets under financing leases totaled $1.3 million and $6.8 million as of March 31, 2022 and December 31, 2021, respectively. Maturities of Financing and Operating Leases Maturities of lease liabilities as of March 31, 2022 were as follows: Years ending December 31: (In thousands) Financing Operating Total Leases 2022 (Remaining Nine Months) $ 16 $ 10,038 $ 10,054 2023 22 11,638 11,660 2024 21 9,145 9,166 2025 21 8,964 8,985 2026 16 8,953 8,969 Thereafter — 51,221 51,221 Total lease payments 96 99,959 100,055 Less: amount representing interest (26) (54,780) (54,806) Total lease liability $ 70 $ 45,179 $ 45,249 Current lease liability $ 12 $ 8,120 $ 8,132 Noncurrent lease liability 58 37,059 37,117 Total lease liability $ 70 $ 45,179 $ 45,249 Other Assets (In thousands) March 31, 2022 December 31, 2021 Investment in non-trade receivable (1) $ 10,049 $ — Equity-method investments in affiliates 9,654 9,443 Deposits 447 129 Other 3,384 994 Total other assets $ 23,534 $ 10,566 ______________ (1) In March 2022, the Company loaned a privately held company $10 million in exchange for a senior secured convertible promissory note (the Note) which matures in March 2025, unless earlier redeemed or converted into equity of the privately held company. The Note bears interest at 8% per annum and is convertible, at the Company's option, into equity of the privately held company upon maturity of the Note or in the event of an initial public offering, equity financing, or corporate transaction (such as a sale or merger), in each case, at a conversion price that is dependent on a variety of factors. In addition, the Note is redeemable prior to maturity, at the issuer's option, in the event of one or more equity or debt financings, one or more asset sales, or an initial public offering, in each case equal to or greater than $50 million in the aggregate. The Company concluded that the arrangement qualifies for accounting as a loan as required by ASC 310-10. The Company will periodically evaluate the collectibility of the loan, and an allowance for credit losses will be recorded when the Company concludes that all or a portion of the loan balance is no longer collectible. Accrued and Other Current Liabilities (In thousands) March 31, 2022 December 31, 2021 Business acquisitions contingent consideration payable (1) $ 24,872 $ — Accrued interest 12,957 9,572 Payroll and related expenses 11,178 9,151 Liability in connection with acquisition of equity-method investment 9,309 8,735 Beauty Labs deferred consideration payable (2) 5,369 30,000 Asset retirement obligation (3) 4,145 3,336 Professional services 3,057 2,447 Contract termination fees 1,407 1,345 Tax-related liabilities 1,233 988 License fee payable 1,050 1,050 Other 5,977 4,833 Total accrued and other current liabilities $ 80,554 $ 71,457 ______________ (1) Business acquisitions contingent consideration payable is the current portion of total acquisition-related contingent consideration. (2) Approximately $23.7 million of the $30.0 million of Beauty Labs deferred consideration was settled with Amyris common stock in March 2022. (3) The asset retirement obligation represents liabilities incurred but not yet discharged in connection with the Company's 2013 abandonment of a partially constructed facility in Pradópolis, Brazil. |