Boxlight CorpBOXL

Boxlight Corp Goodwill & Intangibles Disclosure

10-KFiled Mar 28, 20252 min read
INTANGIBLE ASSETS AND GOODWILL
Intangible assets and goodwill consisted of the following at December 31, 2024 and 2023 (in thousands):
Useful lives20242023
INTANGIBLE ASSETS
Patents
4-10 years
$100 $182 
Customer relationships
8-15 years
48,036 52,588 
Technology
3-5 years
8,371 8,944 
Domain7 years— 14 
Non-compete
 3 years
391 391 
Tradenames
2-10 years
12,253 12,723 
Intangible assets, at cost69,151 74,842 
Accumulated amortization(43,207)(28,878)
Intangible assets, net of accumulated amortization$25,944 $45,964 
GOODWILL
Beginning Balance$— $25,092 
Change due to foreign currency translation— 103 
Impairment— (25,195)
Ending Balance$— $— 
The Company's Goodwill had an indefinite useful life and was tested for impairment annually. During the year ended December 31, 2023, due to declines in the Company's market capitalization and a reduction in cash flows resulting from continued softening in the industry leading to a reduction in sales from interactive flat-panel displays, the Company determined that its remaining Goodwill balance was fully impaired. The Company recognized goodwill impairment
charges for the year ended December 31, 2023 of $22.4 million and $2.8 million in the Americas and EMEA reporting units, respectively.
For the years ended December 31, 2024 and 2023, the Company recorded amortization expense on intangible assets of $19.9 million and $8.3 million, respectively. Amortization expense as of December 31, 2024 included approximately $12.3 million of accelerated amortization resulting from a revision to the useful lives of certain intangible assets from both the Americas and EMEA reporting segments to reflect the current expected economic useful life due to forecasted industry changes in the interactive flat panel display market as well as the Company's operational strategy to move to a unified worldwide display brand. Changes to gross carrying amount of recognized intangible assets due to translation adjustments were approximately ($0.8) million and ($0.1) million as of December 31, 2024 and 2023, respectively.
Expected future amortization expense for intangible assets as of December 31, 2024 is as follows (in thousands):
2025$9,426 
20267,499 
20272,569 
20282,575 
20292,559 
Thereafter1,316 
Total$25,944 

Historical Timeline

Fiscal YearFiled
2024Mar 28, 2025Showing above
2018Mar 28, 2019

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.

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