ALLIANCE ENTERTAINMENT HOLDING CORP Goodwill & Intangibles Disclosure
Note 6: Goodwill and Intangibles, Net
| ($ in thousands) | June 30, 2025 | June 30, 2024 | ||||||
| Goodwill, Beginning Balance | $ | 89,116 | 89,116 | |||||
| Goodwill, Ending Balance | $ | 89,116 | 89,116 | |||||
Intangibles, Net consists of the following at:
| ($in thousands) | Year ended June 2025 | Year Ended June 2024 | ||||||||||||||||||
| Intangibles: | Intangibles Cost | Accum. Amortization | Intangibles, Net | Accum. Amortization | Intangibles, Net | |||||||||||||||
| Customer Relationships | $ | 78,000 | (73,928 | ) | $ | 4,072 | (72,019 | ) | $ | 5,981 | ||||||||||
| Trade Name – Alliance | $ | 5,200 | (5,200 | ) | $ | (5,200 | ) | $ | ||||||||||||
| Contract Acquisition | $ | 1,800 | (180 | ) | $ | 1,620 | $ | |||||||||||||
| Tradename - HMBR | $ | 6,800 | $ | 6,800 | ||||||||||||||||
| Mecca Customer Relationships | $ | 8,023 | (6,393 | ) | $ | 1,630 | (5,818 | ) | $ | 2,205 | ||||||||||
| Customer List | $ | 12,760 | (8,407 | ) | $ | 4,353 | (7,565 | ) | $ | 5,195 | ||||||||||
| Total | $ | 112,583 | (94,108 | ) | $ | 18,475 | (90,602 | ) | $ | 13,381 | ||||||||||
During the years ended June 30, 2025, and 2024, the Company recorded amortization expense of $3.5 million and $4.0 million, respectively.
Expected amortization over the next five years and thereafter, as of June 30, 2025, is as follows:
| ($ in thousands) | Intangible Assets | |||
| Year Ended June 30, | ||||
| 2026 | $ | 3,375 | ||
| 2027 | 3,326 | |||
| 2028 | 2,298 | |||
| 2029 | 1,019 | |||
| 2030 | 379 | |||
| Thereafter | 1,278 | |||
| Total Expected Amortization | $ | 11,675 | ||
| Indefinite-lived Intangible asset | 6,800 | |||
| Total Intangible Assets | $ | 18,475 | ||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Sep 10, 2025 | Showing above |
| 2024 | Sep 20, 2024 | |
| 2023 | Oct 19, 2023 | |
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.