AIRGAIN INC Goodwill & Intangibles Disclosure
Note 7. Intangible Assets and Goodwill
Other Intangible Assets
The following is a summary of the Company’s acquired intangible assets (dollars in thousands):
|
|
December 31, 2025 |
|
|||||||||||
|
|
Weighted average amortization period (in years) |
|
Gross carrying amount |
|
|
Accumulated amortization |
|
|
Net carrying amount |
|
|||
Market related intangibles |
|
5 |
|
$ |
1,820 |
|
|
$ |
1,820 |
|
|
$ |
— |
|
Customer relationships |
|
7 |
|
|
13,780 |
|
|
|
13,558 |
|
|
|
222 |
|
Developed technologies |
|
11 |
|
|
4,380 |
|
|
|
2,327 |
|
|
|
2,053 |
|
Covenants to non-compete |
|
2 |
|
|
115 |
|
|
|
115 |
|
|
|
— |
|
Licensed technology |
|
3 |
|
|
804 |
|
|
|
292 |
|
|
|
512 |
|
Total intangible assets, net |
|
|
|
$ |
20,899 |
|
|
$ |
18,112 |
|
|
$ |
2,787 |
|
|
|
December 31, 2024 |
|
|||||||||||
|
|
Weighted average amortization period (in years) |
|
Gross carrying amount |
|
|
Accumulated amortization |
|
|
Net carrying amount |
|
|||
Market related intangibles |
|
5 |
|
$ |
1,820 |
|
|
$ |
1,475 |
|
|
$ |
345 |
|
Customer relationships |
|
7 |
|
|
13,780 |
|
|
|
11,266 |
|
|
|
2,514 |
|
Developed technologies |
|
11 |
|
|
4,380 |
|
|
|
1,973 |
|
|
|
2,407 |
|
Covenants to non-compete |
|
2 |
|
|
115 |
|
|
|
115 |
|
|
|
— |
|
Licensed technology |
|
3 |
|
|
581 |
|
|
|
48 |
|
|
|
533 |
|
Total intangible assets, net |
|
|
|
$ |
20,676 |
|
|
$ |
14,877 |
|
|
$ |
5,799 |
|
Amortization expense was $3.2 million and $ million for the year ended December 31, 2025 and 2024, respectively.
Estimated annual amortization of intangible assets for the next five years and thereafter is shown in the following table (in thousands):
|
|
Estimated future amortization |
|
|
2026 |
|
$ |
816 |
|
2027 |
|
|
575 |
|
2028 |
|
|
275 |
|
2029 |
|
|
275 |
|
2030 |
|
|
275 |
|
Thereafter |
|
|
571 |
|
Total |
|
$ |
2,787 |
|
The Company regularly reviews the carrying amount of its long-lived assets subject to depreciation and amortization, as well as the related useful lives, to determine whether indicators of impairment may exist that warrant adjustments to carrying values or estimated useful lives. An impairment loss is recognized when the sum of the expected future undiscounted net cash flows is less than the carrying amount of the asset. Should impairment exist, the impairment loss is measured based on the excess of the carrying amount of the asset over the asset’s fair value.
No impairment losses were recorded for intangible assets for the years ended December 31, 2025 and 2024, respectively.
Goodwill
There were no changes in the carrying amount of goodwill for the years ended December 31, 2025 and 2024.
The Company performs a qualitative assessment on goodwill at least annually on December 31, or more frequently if events or changes in circumstances indicate that the carrying value of goodwill may not be recoverable. If it is determined in the qualitative assessment that the fair value of a reporting unit is more likely than not below its carrying amount, then the Company will perform a quantitative impairment test. The quantitative goodwill impairment test is performed by comparing the fair value of a reporting unit with its carrying amount. Any excess in the carrying value of a reporting unit's goodwill over its fair value is recognized as an impairment loss, limited to the total amount of goodwill allocated to that reporting unit. For purposes of goodwill impairment testing, the Company has one reporting unit. As a result of the Company’s impairment assessment, no goodwill impairment was recognized as of December 31, 2025 and 2024.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Feb 27, 2025 | |
| 2023 | Mar 6, 2024 | |
| 2022 | Mar 20, 2023 | |
| 2021 | Mar 21, 2022 | |
| 2020 | Feb 19, 2021 | |
| 2019 | Feb 28, 2020 | |
| 2018 | Mar 15, 2019 | |
| 2017 | Mar 15, 2018 | |
| 2016 | Mar 15, 2017 | |
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.