American Bitcoin Corp. Goodwill & Intangibles Disclosure
Note 8– Intangible Assets, net and Goodwill
Finite-lived Intangible Assets, Net
| Weighted average remaining amortization period (in years) | Gross carrying amount | Accumulated amortization | Impairment | Net carrying | ||||||||||||||
| Acquired developed technology | 0.50 | $ | 5,978,080 | $ | (3,480,769 | ) | $ | (2,375,645 | ) | $ | 121,666 | |||||||
| Acquired trade names | 0.52 | 566,920 | (365,627 | ) | (158,237 | ) | 43,056 | |||||||||||
| Customer relationships | 12.50 | 3,440,000 | (763,500 | ) | (676,500 | ) | 2,000,000 | |||||||||||
| Total intangible assets | $ | 9,985,000 | $ | (4,609,896 | ) | $ | (3,210,382 | ) | $ | 2,164,722 | ||||||||
| Capitalized software - In-service | 1.17 | 12,038,149 | (8,452,649 | ) | (2,930,944 | ) | 654,556 | |||||||||||
| Capitalized software - Work in progress | N/A | 1,689,976 | — | (1,689,976 | ) | — | ||||||||||||
| Total capitalized software | 13,728,125 | (8,452,649 | ) | (4,620,920 | ) | 654,556 | ||||||||||||
| Total finite-lived intangible assets | $ | 23,713,125 | $ | (13,062,545 | ) | $ | (7,831,302 | ) | $ | 2,819,278 | ||||||||
Intangible assets as of December 31, 2021 consist of the following:
| Weighted average |
| Gross carrying amount |
| Accumulated |
| Impairment | Net carrying |
| |||||||||
Acquired developed technology | 3.35 |
| $ | 5,978,080 |
| $ | (2,703,157 | ) | $ | — | $ | 3,274,923 |
| |||||
Acquired trade names | 3.09 |
|
| 566,920 |
|
| (234,160 | ) | — |
| 332,760 |
| ||||||
Customer relationships | 10.18 |
|
| 3,440,000 |
|
| (494,000 | ) | — |
| 2,946,000 |
| ||||||
Total intangible assets |
|
| $ | 9,985,000 |
| $ | (3,431,317 | ) | $ | — | $ | 6,553,683 |
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Capitalized software - In-service | 2.02 |
|
| 8,738,801 |
|
| (4,388,524 | ) | — |
| 4,350,277 |
| ||||||
Capitalized software - Work in progress | N/A |
|
| 2,886,859 |
|
| — |
| (296,483 | ) |
| 2,590,376 |
| |||||
Total capitalized software |
|
|
| 11,625,660 |
|
| (4,388,524 | ) | (296,483 | ) |
| 6,940,653 |
| |||||
Total finite-lived intangible assets |
|
| $ | 21,610,660 |
| $ | (7,819,841 | ) | $ | (296,483 | ) | $ | 13,494,336 |
| ||||
| Intangible Assets | Capitalized Software | |||||
| 2023 | $ | 324,722 | $ | 542,479 | ||
| 2024 | 160,000 | 112,077 | ||||
| 2025 | 160,000 | — | ||||
| 2026 | 160,000 | — | ||||
| 2027 | 160,000 | — | ||||
| Thereafter | 1,200,000 | — | ||||
| Total | $ | 2,164,722 | $ | 654,556 |
| Balance as of December 31, 2020 | $ | 41,789,527 | ||
| Additions due to acquisition of Viridian | 5,408,884 | |||
| Impairment | (14,354,114 | ) | ||
| Balance as of December 31, 2021 | $ | 32,844,297 | ||
| Impairment | (31,135,994 | ) | ||
| Balance as of December 31, 2022 | $ | 1,708,303 |
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About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.