Note 6. Goodwill and Intangible Assets, net

Goodwill

During the year ended December 31, 2020, the Company did not dispose of, impair or recognize additional goodwill. 

Intangible Assets, net

Intangible assets, net, which include a license for the right to commercialize the INTERCEPT Blood System in Asia, were subject to ratable amortization over the original estimated useful life of ten years. Intangible assets were fully amortized as of December 31, 2020. Accumulated amortization of intangible assets as of December 31, 2020, and December 31, 2019, was $2.0 million and $1.9 million, respectively.

 

 

Historical Timeline

Fiscal YearFiled
2020Feb 25, 2021Showing above
2019Feb 21, 2020
2018Feb 27, 2019
2017Mar 8, 2018
2016Mar 8, 2017
2015Mar 9, 2016

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.