AST SpaceMobile, Inc. Goodwill & Intangibles Disclosure
Goodwill
The change in the carrying amount of goodwill for the years ended December 31, 2021 and 2020 is summarized as follows (in thousands):
|
|
December 31, 2021 |
|
|
December 31, 2020 |
|
||
Balance at beginning of the period |
|
$ |
3,912 |
|
|
$ |
3,593 |
|
Translation adjustments |
|
|
(271 |
) |
|
|
319 |
|
Balance at end of the period |
|
$ |
3,641 |
|
|
$ |
3,912 |
|
Intangible Assets
Intangible assets are comprised of the following as of December 31, 2021 and 2020 (in thousands):
|
|
December 31, 2021 |
|
|||||||||
|
|
Weighted Average Remaining Useful Life (Years) |
|
Gross Carrying Value |
|
Accumulated Amortization |
|
Net Carrying Value |
|
|||
Developed technology |
|
1.2 |
|
$ |
1,081 |
|
$ |
(862 |
) |
$ |
219 |
|
Trademarks and domain name |
|
13.2 |
|
|
23 |
|
|
- |
|
|
23 |
|
Total |
|
2.3 |
|
$ |
1,104 |
|
$ |
(862 |
) |
$ |
242 |
|
|
|
December 31, 2020 |
|
|||||||||
|
|
Weighted Average Remaining Useful Life (Years) |
|
Gross Carrying Value |
|
Accumulated Amortization |
|
Net Carrying Value |
|
|||
Developed technology |
|
2.1 |
|
$ |
1,161 |
|
$ |
(658 |
) |
$ |
503 |
|
Trademarks and domain name |
|
14.2 |
|
|
23 |
|
|
- |
|
|
23 |
|
Total |
|
2.7 |
|
$ |
1,184 |
|
$ |
(658 |
) |
$ |
526 |
|
The aggregate amortization expense for the years ended December 31, 2021 and 2020 was approximately $0.2 million and $0.2 million, respectively. Based on the carrying value of identified intangible assets recorded at December 31, 2021, and assuming no subsequent impairment of the underlying assets, the amortization expense is expected to be as follows (in thousands):
Fiscal Year |
|
Amortization Expense |
|
|
2022 |
|
$ |
189 |
|
2023 |
|
|
33 |
|
2024 |
|
|
2 |
|
2025 |
|
|
2 |
|
2026 |
|
|
2 |
|
Thereafter |
|
|
14 |
|
Total |
|
$ |
242 |
|
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.