CEMTREX INC Goodwill & Intangibles Disclosure
NOTE 10 – GOODWILL
Changes in the carrying amount of goodwill, by segment, are as follows.
| Security | Industrial Services | Consolidated | ||||||||||
| Balance at September 30, 2023 | $ | 530,475 | $ | 3,851,416 | $ | 4,381,891 | ||||||
| Purchase price allocation adjustment | (143,069 | ) | (143,069 | ) | ||||||||
| Impairment | (530,475 | ) | (530,475 | ) | ||||||||
| Balance at September 30, 2024 | $ | $ | 3,708,347 | $ | 3,708,347 | |||||||
For the year ended September 30, 2024, $530,475 of impairment of the Company’s goodwill was recorded.
As of September 30, 2024, and September 30, 2023, accumulated impairment losses of $3,846,475 and $3,316,000 related to the Security segment have been recorded.
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2024 | Dec 30, 2024 | Showing above |
| 2023 | Dec 28, 2023 | |
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.