Perspective Therapeutics, Inc. Goodwill & Intangibles Disclosure
Goodwill
The Company performed its annual qualitative goodwill impairment analysis as of October 31, 2024, and determined that the fair value of its sole reporting unit exceeded its book value. Later in the fourth quarter of 2024, when the Company experienced a decline in its stock market price in November that continued into December, the Company determined that the decline in stock market price and market capitalization of the Company constituted a substantive change in circumstances that would more likely than not reduce the fair value of the Company’s single reporting unit below its carrying amount.
In determining the fair value of the Company’s sole reporting unit, the Company used a market-based approach and the primary input was a quoted market price in an active market. Next, the Company performed a quantitative assessment using a market-based approach, utilizing observable inputs and a reasonable control premium. In connection with and as a result of the quantitative assessment, the Company recorded a goodwill impairment charge of $24.1 million for the three months ended December 31, 2024. This impairment charge reduced the balance of goodwill to $0.
The carrying amount of goodwill at December 31, 2023 was $24.1 million and, as noted in Note 4, Merger, was recorded in connection with the Company’s Merger of Viewpoint in February 2023.
The following table summarizes the components of the Company’s other intangible assets (in thousands):
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December 31, 2024 |
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December 31, 2023 |
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Cost |
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Accumulated |
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Net Carrying |
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Cost |
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Accumulated |
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Net Carrying |
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Indefinite-lived intangible assets |
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In-process research and |
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$ |
50,000 |
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$ |
- |
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$ |
50,000 |
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$ |
50,000 |
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$ |
- |
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$ |
50,000 |
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Total |
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$ |
50,000 |
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$ |
- |
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|
$ |
50,000 |
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$ |
50,000 |
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|
$ |
- |
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$ |
50,000 |
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The Company’s IPR&D assets represent the estimated fair value of Viewpoint’s pipeline of radiotherapy product candidates acquired in February 2023. During the fourth quarter of 2024, the Company performed its annual qualitative impairment analysis, noting that the Company continues to invest in its IPR&D assets and that these assets continue to progress in clinical and preclinical studies. In addition, there have been no material delays in the Company’s anticipated timelines regarding its IPR&D assets. Based on the results of the analysis, the Company determined there was no impairment to the IPR&D assets. For additional information related to goodwill and IPR&D, see Note 2, Summary of Significant Accounting Policies, and Note 4, Merger.
Other Assets
Other assets, net of accumulated amortization consisted of the following (in thousands):
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December 31, 2024 |
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December 31, 2023 |
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Website development |
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$ |
90 |
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$ |
90 |
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Patents and trademarks |
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- |
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336 |
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Interest in GT Medical |
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196 |
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|
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- |
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Security deposits |
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72 |
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- |
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Total other assets |
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358 |
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426 |
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Less: Accumulated amortization |
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(79 |
) |
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(72 |
) |
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279 |
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|
354 |
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Equity method investment1 |
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126 |
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133 |
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Total other assets, net |
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$ |
405 |
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$ |
487 |
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Year Ended December 31, |
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2024 |
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2023 |
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Amortization expense on website development |
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$ |
7 |
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$ |
7 |
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Total amortization expense |
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$ |
7 |
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$ |
7 |
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Future amortization expense is expected to be as follows (in thousands):
Year ending December 31, |
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2025 |
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$ |
7 |
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2026 |
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4 |
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2027 |
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- |
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Thereafter |
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- |
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Total future amortization expense |
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$ |
11 |
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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.