Cardinal Infrastructure Group Inc. Goodwill & Intangibles Disclosure
9. Goodwill and Intangible Assets
The changes in the carrying amount of goodwill are as follows:
|
|
December 31, |
|
|
December 31, |
|
||
Beginning balance |
|
$ |
7,050,963 |
|
|
$ |
7,050,963 |
|
Goodwill acquired in current‑period business combinations |
|
|
16,459,686 |
|
|
|
— |
|
Ending balance |
|
$ |
23,510,649 |
|
|
$ |
7,050,963 |
|
Additions to goodwill were from acquisitions detailed in Note 3 – Business Combinations. The Company did not identify any goodwill impairment triggering events during years ended December 31, 2025, 2024 and 2023.
Intangible assets consist of the following at December 31, 2025. The Company had no intangible assets balance at December 31, 2024.
|
Cost |
|
Accumulated Amortization |
|
Carrying Value |
|
|||
Backlog |
$ |
7,542,000 |
|
$ |
(6,479,500 |
) |
$ |
1,062,500 |
|
Customer relationships |
|
14,600,000 |
|
|
(523,808 |
) |
|
14,076,192 |
|
Trade name |
|
500,000 |
|
|
(125,000 |
) |
|
375,000 |
|
Total |
$ |
22,642,000 |
|
$ |
(7,128,308 |
) |
$ |
15,513,692 |
|
The estimated aggregate amortization expense for each of the next five years is as follows:
2026 |
|
$ |
3,523,214 |
|
2027 |
|
|
2,085,714 |
|
2028 |
|
|
2,085,714 |
|
2029 |
|
|
2,085,714 |
|
2030 |
|
|
2,085,714 |
|
Thereafter |
|
|
3,647,622 |
|
Total |
|
$ |
15,513,692 |
|
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.