authID Inc. Goodwill & Intangibles Disclosure
NOTE 4 – INTANGIBLE ASSETS, NET (OTHER THAN GOODWILL)
The Company’s intangible assets consist of intellectual property acquired from FIN in addition to internally developed software that have been placed into service. They are amortized over their estimated useful lives as indicated below. The following is a summary of activity related to intangible assets for the years ended December 31, 2023 and 2022:
| Acquired and Developed Software | Patents | Total | ||||||||||
| Useful Lives | 5 Years | 10 Years | ||||||||||
| Carrying Value at December 31, 2021 | 2,238,882 | 140,570 | 2,379,452 | |||||||||
| Additions | 6,311 | 6,311 | ||||||||||
| Impairment of assets | (1,107,867 | ) | (1,107,867 | ) | ||||||||
| Amortization | (695,420 | ) | (16,217 | ) | (711,637 | ) | ||||||
| Carrying Value at December 31, 2022 | $ | 435,595 | $ | 130,664 | $ | 566,259 | ||||||
| Additions | 16,600 | 16,600 | ||||||||||
| Impairment of assets | ||||||||||||
| Amortization | (239,397 | ) | (16,461 | ) | (255,858 | ) | ||||||
| Carrying Value at December 31, 2023 | $ | 212,798 | $ | 114,203 | $ | 327,001 | ||||||
The following is a summary of intangible assets as of December 31, 2023:
Acquired and Developed Software | Patents | Total | ||||||||||
| Cost | 1,734,662 | 164,614 | 1,899,276 | |||||||||
| Accumulated amortization | (1,521,864 | ) | (50,411 | ) | (1,572,275 | ) | ||||||
| Carrying Value at December 31, 2023 | $ | 212,798 | $ | 114,203 | $ | 327,001 | ||||||
The following is a summary of intangible assets as of December 31, 2022:
Acquired and Developed Software | Patents | Total | ||||||||||
| Cost | 4,476,271 | 164,614 | 4,640,885 | |||||||||
| Accumulated amortization | (4,040,676 | ) | (33,950 | ) | (4,074,626 | ) | ||||||
| Carrying Value at December 31, 2023 | $ | 435,595 | $ | 130,664 | $ | 566,259 | ||||||
The following is the future amortization of intangible assets for the year ended December 31:
| 2024 | 173,632 | |||
| 2025 | 69,331 | |||
| 2026 | 19,228 | |||
| 2027 | 16,461 | |||
| 2028 | 16,461 | |||
| Thereafter | 31,888 | |||
| $ | 327,001 |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2023 | Mar 20, 2024 | Showing above |
| 2022 | Mar 30, 2023 | |
| 2021 | Mar 22, 2022 | |
| 2020 | Mar 8, 2021 | |
| 2019 | Mar 30, 2020 | |
| 2018 | Mar 8, 2019 | |
| 2017 | Mar 15, 2018 | |
| 2016 | Jul 12, 2017 | |
| 2015 | Nov 2, 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.