ALPHA PRO TECH LTD Goodwill & Intangibles Disclosure
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5. |
Goodwill and Intangible Assets |
Management evaluates goodwill for impairment on an annual basis (in the fourth quarter), and no impairment charge was identified for the years presented.
Definite-lived intangible assets, consisting of patents and trademarks, are amortized over their useful lives. Amortization expense for intangible assets was $0 and $1,000 for the years ended December 31, 2024 and 2023, respectively. There is no estimated future amortization expense related to definite-lived intangible assets as of December 31, 2024.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2024 | Mar 12, 2025 | Showing above |
| 2022 | Mar 16, 2023 | |
| 2021 | Mar 11, 2022 | |
| 2019 | Mar 10, 2020 | |
| 2018 | Mar 6, 2019 | |
| 2017 | Mar 12, 2018 | |
| 2016 | Mar 8, 2017 | |
| 2015 | Mar 3, 2016 | |
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.