Note 6 – Goodwill and Intangible Assets

Intangible assets, excluding goodwill, consist of the following (in thousands):

 

 

December 31, 2025

 

 

December 31, 2024

 

 

 

Cost

 

 

Accumulated
Amortization

 

 

Net Carrying Value

 

 

Cost

 

 

Accumulated
Amortization

 

 

Net Carrying Value

 

Intangible assets subject to amortization

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Patents

 

$

1,953

 

 

$

(1,003

)

 

$

950

 

 

$

1,940

 

 

$

(877

)

 

$

1,063

 

Purchased technology

 

 

16,900

 

 

 

(14,084

)

 

 

2,816

 

 

 

16,900

 

 

 

(12,206

)

 

 

4,694

 

Intangible assets not subject to
    amortization

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Trademarks

 

 

117

 

 

 

 

 

 

117

 

 

 

117

 

 

 

 

 

 

117

 

   Total

 

$

18,970

 

 

$

(15,087

)

 

$

3,883

 

 

$

18,957

 

 

$

(13,083

)

 

$

5,874

 

Amortization expense related to definite-lived intangible assets was (in thousands):

 

 

Year Ended December 31,

 

 

 

2025

 

 

2024

 

Direct costs and expenses

 

$

2

 

 

$

2

 

Sales, marketing, general and administrative

 

 

2,026

 

 

 

2,006

 

   Total

 

$

2,028

 

 

$

2,008

 

 

 

Future estimated amortization expense of intangible assets is (in thousands):

 

As of
December 31, 2025

 

2026

 

 

1,992

 

2027

 

 

1,043

 

2028

 

 

103

 

2029

 

 

101

 

2030

 

 

100

 

2031 and thereafter

 

 

427

 

Total

 

$

3,766

 

Historical Timeline

Fiscal YearFiled
2025Feb 26, 2026Showing above
2024Mar 3, 2025
2023Mar 1, 2024
2022Mar 6, 2023
2021Mar 14, 2022
2020Mar 16, 2021

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.