Beam Global Goodwill & Intangibles Disclosure
| 8. | GOODWILL AND INTANGIBLE ASSETS |
Intangible assets, net as of December 31, 2025 and 2024 consists of the following:
| December 31, 2024 | ||||||||||||||||
| Weighted- | ||||||||||||||||
| Gross | Net | average | ||||||||||||||
| Carrying | Accumulated | Carrying | Amortization | |||||||||||||
| Amount | Amortization | Amount | Period (yrs) | |||||||||||||
| Developed technology | $ | 8,074 | $ | (2,080 | ) | $ | 5,994 | 11 | ||||||||
| Trade name | 1,756 | (498 | ) | 1,258 | 10 | |||||||||||
| Customer relationships | 444 | (158 | ) | 286 | 13 | |||||||||||
| Backlog | 185 | (185 | ) | - | 1 | |||||||||||
| Patents | 576 | (77 | ) | 499 | 20 | |||||||||||
| Intangible assets | $ | 11,035 | $ | (2,998 | ) | $ | 8,037 | |||||||||
| December 31, 2025 | ||||||||||||||||
| Weighted- | ||||||||||||||||
| Gross | Net | average | ||||||||||||||
| Carrying | Accumulated | Carrying | Amortization | |||||||||||||
| Amount | Amortization | Amount | Period (yrs) | |||||||||||||
| Developed technology | $ | 8,074 | $ | (2,814 | ) | $ | 5,260 | 11 | ||||||||
| Trade name | 1,756 | (673 | ) | 1,083 | 10 | |||||||||||
| Customer relationships | 444 | (199 | ) | 245 | 13 | |||||||||||
| Backlog | 185 | (185 | ) | - | 1 | |||||||||||
| Patents | 640 | (101 | ) | 539 | 20 | |||||||||||
| Intangible assets | $ | 11,099 | $ | (3,972 | ) | $ | 7,127 | |||||||||
Amortization expense for each of the years ended December 31, 2025 and 2024 was $1.0 million. Amortization expense for intangible assets held as of December 31, 2025 will be million for each of the years 2026 – 2028. For both years ending December 31, 2025 and December 31, 2024, amortization expense recognized in Operating expenses was $0.2 million and million respectively and $0.8 million and $0.7 million in Cost of Good Sold respectively.
The Company’s acquisitions identified Goodwill and intangible assets. Goodwill represents the purchase price in excess of fair values assigned to the underlying identifiable net assets of the acquired business. Goodwill as of December 31, 2025 and 2024 consists of the following:
| Goodwill | ||||
| Balance as of December 31, 2023 | $ | 10,270 | ||
| Acquisition of Telcom | 692 | |||
| Currency impact | (382 | ) | ||
| Balance as of December 31, 2024 | $ | 10,580 | ||
| Impairment of goodwill | (10,780 | ) | ||
| Currency impact | 200 | |||
| Balance as of December 31, 2025 | $ | - | ||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Apr 9, 2026 | Showing above |
| 2024 | Apr 11, 2025 | |
| 2023 | Apr 16, 2024 | |
| 2022 | Mar 31, 2023 | |
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.