NOTE 11: INTANGIBLE ASSETS, NET AND GOODWILL

 

The following tables summarize the composition of intangible assets as of  December 31, 2025 and 2024

 

 

 

December 31, 2025

 

 

 

Gross

 

 

 

 

 

 

 

 

 

 

Net

 

 

Weighted

 

 

 

Carrying

 

 

Accumulated

 

 

Accumulated

 

 

Carrying

 

 

Average

 

 

 

Amount

 

 

Amortization

 

 

Impairment

 

 

Amount

 

 

Life

 

Finite lived intangible assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BNA software

 

$

1,109

 

 

$

(84

)

 

$

(1,025

)

 

$

-

 

 

 

-

 

Developed technology

 

 

700

 

 

 

(52

)

 

 

 

 

 

648

 

 

 

8.33

 

Trade names

 

 

150

 

 

 

(33

)

 

 

 

 

 

117

 

 

 

2.33

 

Non-compete agreements

 

 

110

 

 

 

(14

)

 

 

 

 

 

96

 

 

 

4.33

 

Total intangible assets

 

$

2,069

 

 

$

(183

)

 

$

(1,025

)

 

$

861

 

 

 

6.93

 

     

December 31, 2024

Gross

Net

Weighted

Carrying

Accumulated

Accumulated

Carrying

Average

Amount

Amortization

Impairment

Amount

Life

Finite lived intangible assets

BNA software

$

1,109

$

(55

)

$

(874

)

$

180

4.75

Total intangible assets

$

1,109

$

(55

)

$

(874

)

$

180

4.75

  
Amortization expense was $128 and $55 for the year ended  December 31, 2025 and 2024, respectively.

 

During the reporting period, management evaluated the Company’s capitalized software development costs for indicators of impairment in accordance with ASC 350-40, Internal-Use Software. The review was prompted by a change in strategic direction resulting from the acquisition of Evoke Neuroscience and its hardware offering.

 

Accordingly, the Company recognized an impairment loss of $152 during the period ended December 31, 2025. This charge was recorded within “Impairment of assets” on the statement of operations, reducing the carrying value of the software asset to $nil.

 

The estimated aggregate future amortization expense for intangible assets subject to amortization as of  December 31, 2025, is summarized below:

 

December 31, 2025

 

Estimated Future Amortization Expense

 

2026

 

$

150

 

2027

 

 

150

 

2028

 

 

116

 

2029

 

 

100

 

2030

 

 

345

 

Thereafter

 

 

-

 

Total

 

$

861

 

 

 

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Historical Timeline

Fiscal YearFiled
2025Mar 31, 2026Showing above
2024Apr 3, 2025
2023Mar 20, 2024
2022Apr 17, 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.