Capstone Holding Corp. Goodwill & Intangibles Disclosure
Note 5 Goodwill and Other Intangible Assets
As of December 31, 2024 and December 31, 2023, the Company had $23.3 million in goodwill. There were no changes in the recognized goodwill balance during the periods presented.
The following tables summarize the Company’s other intangible assets in (“000’s”):
| As of December 31, 2023 | ||||||||||||
| Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||
| Non-compete agreements | $ | 50 | $ | (40 | ) | $ | 10 | |||||
| Customer lists | 231 | (231 | ) | |||||||||
| Other | 11 | (11 | ) | |||||||||
| Total definite-lived intangible assets | 292 | (282 | ) | 10 | ||||||||
| Indefinite-lived intangible assets | ||||||||||||
| Total intangible assets | $ | 292 | $ | (282 | ) | $ | 10 | |||||
| As of December 31, 2024 | ||||||||||||
| Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | ||||||||||
| Non-compete agreements | $ | 50 | $ | (50 | ) | $ | ||||||
| Customer lists | 231 | (231 | ) | |||||||||
| Other | 11 | (11 | ) | |||||||||
| Total definite-lived intangible assets | 292 | (292 | ) | |||||||||
| Trademark | 48 | 0 | 48 | |||||||||
| Indefinite-lived intangible assets | 48 | 48 | ||||||||||
| Total intangible assets | $ | 340 | $ | (292 | ) | $ | 48 | |||||
As of December 31, 2024, the definite-lived intangible assets are fully amortized and there is no future amortization expense.
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.