AmpliTech Group, Inc. Goodwill & Intangibles Disclosure

(9) Goodwill and Intangible Assets

 

Goodwill

 

Goodwill is related to the acquisition of Spectrum Semiconductor Materials Inc. on December 15, 2021. Goodwill is primarily related to expected improvements and technology performance and functionality, as well as sales growth from future product and service offerings and new customers, together with certain intangible assets that do not qualify for separate recognition. Goodwill is generally not amortizable for tax and financial statement purposes. As of December 31, 2025 and 2024, goodwill was $4,696,883, respectively.

 

Other Intangible Assets

 

Intellectual property and customer relationships of approximately $8,210,367 was acquired through the Titan asset acquisition and will be used in the development and manufacturing of 5G Oran products. As of December 31, 2025, total consideration consisted of cash of $3,500,000, 914,635 shares of common stock with a fair value of $1,710,367 and a contingent liability of $3,000,000. Please refer to Note 15 for the description of the intangible asset acquisition.

 

In September 2025, additional IP assets of $2,200,000 were acquired to support 5G development and strengthen our technology portfolio. This acquisition was financed through a cash payment of $800,000, with the remaining balance recorded in accounts payable at December 31, 2025.

 

On July 26, 2024, the Company’s AGTGSS division entered into a licensing product agreement, which was amended as of September 12, 2025. Under the terms of the agreement, the licensor agreed to an exclusive United States distribution and global licensing rights for certain 5G telecom equipment for 24 months for the purpose of marketing, selling, renting, deployment and maintenance of the licensed products with the Company. For services, the Company will pay the Licensor certain software IP license fees and product certification support in the amount of $1,790,000. As of December 31, 2025, the $1,790,000 payment was recorded as follows; $1,250,000 was allocated towards this licensing agreement of which $710,000 was paid in 2024, $432,000 for lab equipment (See Note 8) and $108,000 in certification fees, which was recorded in research and development on the income statement.

 

Intangible assets consisted of the following at December 31, 2025:

 Schedule of Intangible Assets

		Gross Carrying				Accumulated								Weighted
		Amount				Amortization				Net				Average Life
Indefinite-lived intangibles
Trade name		$	514,284			$	–			$	514,284				Indefinite
Total Indefinite-lived intangibles			514,284				–			$	514,284
Definite-lived intangibles
Intellectual property			9,080,288				483,654				8,596,634				10.42
Customer relationships			3,508,710				516,339				2,992,371				13.83
Licenses			1,250,000				208,333				1,041,667				1.70
Total definite-lived intangibles			13,838,998				1,208,326				12,630,672
Total intangible assets		$	14,353,282			$	1,208,326			$	13,144,956

 

 

AmpliTech Group, Inc.

Notes To Consolidated Financial Statements

For the Years Ended December 31, 2025 and 2024

 

Intangible assets consisted of the following at December 31, 2024:

 

		Gross Carrying				Accumulated								Weighted
		Amount				Amortization				Net				Average Life
Trade name		$	514,284			$	–			$	514,284				Indefinite
Customer relationships			2,178,631				326,796				1,851,835				16.97
Total		$	2,692,915			$	326,796			$	2,366,119

 

Amortization expense for the years ended December 31, 2025 and 2024 was $881,530 and $150,086, respectively.

 

Intangible asset impairments, consisting of trade name, customer relationships and intellectual property related to the purchase of Specialty Microwave, for the years ended December 31, 2025 and 2024, were $0 and $467,928, respectively.

 

Annual amortization of intangible assets are as follows:

 Schedule of Amortization of Assets

2026		$	1,680,328
2027			1,471,995
2028			1,055,328
2029			1,055,328
2030			1,055,328
Thereafter			6,312,365
Total		$	12,630,672