CG Oncology, Inc. Goodwill & Intangibles Disclosure
Goodwill
In connection with the Conversion Event in July 2025, the Company recognized goodwill of $10.3 million. See Note 17 for additional information on this transaction.
The Company annually assesses goodwill for impairment in the fourth quarter of each calendar year and at an interim date if indications of impairment exist. During the year ended December 31, 2025, no goodwill impairment was recognized.
Intangible Assets
As part of the Conversion Event, the Company acquired customer relationships of $0.3 million and trade names and trademarks of $0.3 million. The components of intangible assets as of December 31, 2025 were as follows (in thousands):
|
|
Gross Carrying Amount |
|
|
Accumulated Amortization |
|
|
Net Carrying Amount |
|
|
Useful Lives |
|
||||
Customer relationships |
|
$ |
300 |
|
|
$ |
13 |
|
|
$ |
287 |
|
|
|
10 |
|
Trade names and trade marks |
|
|
300 |
|
|
|
12 |
|
|
|
288 |
|
|
|
10 |
|
Total intangible assets, net |
|
$ |
600 |
|
|
$ |
25 |
|
|
$ |
575 |
|
|
|
|
|
The Company's intangible assets are amortized on a straight-line basis over their useful lives. Intangible assets amortization expense was less than $0.1 million for the year ended December 31, 2025. The following table presents the estimated future amortization expense related to intangible assets as of December 31, 2025 (in thousands):
|
|
Accumulated Amortization |
|
|
2026 |
|
$ |
60 |
|
2027 |
|
|
60 |
|
2028 |
|
|
60 |
|
2029 |
|
|
60 |
|
2030 |
|
|
60 |
|
Thereafter |
|
|
275 |
|
Total future amortization expense |
|
$ |
575 |
|
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.