Goodwill and Intangible Assets
Intangible assets with finite lives acquired through a business combination are recorded at fair value, less accumulated amortization. Customer relationships and trade-names are amortized on a straight-line basis over their expected useful lives of 15 to 20 years and 5 years, respectively.
Goodwill
There was no change in the carrying amount of goodwill for the year ended December 31, 2025.
Finite-Lived Intangible Assets
Intangible assets subject to amortization were as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| December 31, 2025 | | December 31, 2024 | | |
| Gross Carrying Amount | | Accumulated Amortization | | Net Book Value | | Gross Carrying Amount | | Accumulated Amortization | | Net Book Value | | | | |
| Customer relationships | $ | 36,820 | | | $ | (7,572) | | | $ | 29,248 | | | $ | 36,820 | | | $ | (5,666) | | | $ | 31,154 | | | | | |
| Licenses | 18,451 | | | (7,842) | | | 10,609 | | | 18,451 | | | (6,919) | | | 11,532 | | | | | |
| Trade names | 1,100 | | | (862) | | | 238 | | | 1,100 | | | (642) | | | 458 | | | | | |
| Total | $ | 56,371 | | | $ | (16,276) | | | $ | 40,095 | | | $ | 56,371 | | | $ | (13,227) | | | $ | 43,144 | | | | | |
For each of the years ended December 31, 2025 and 2024, the Company recorded amortization expense on intangible assets of $3.0 million.
The estimated aggregate amortization expense for each of the next five years is as follows:
| | | | | |
| Year | Amount |
| 2026 | $ | 3,049 | |
| 2027 | 2,866 | |
| 2028 | 2,829 | |
| 2029 | 2,829 | |
| 2030 | 2,829 | |
| |
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.