ClearPoint Neuro, Inc. Goodwill & Intangibles Disclosure
Goodwill
On November 20, 2025, the Company acquired all outstanding equity interests of IRRAS. A goodwill balance of $7.5 million was recognized for the excess of the consideration transferred over the net assets acquired and represents the expected synergies, value of the assembled workforce, and the collective experience of the management team with regards to its operations, customers, and industry.
A summary of the activity impacting goodwill is presented below (in thousands):
Balance as of December 31, 2024 |
|
$ |
— |
|
Goodwill acquired |
|
|
7,472 |
|
Balance as of December 31, 2025 |
|
$ |
7,472 |
|
Intangible Assets
The acquired intangible assets are amortized using the straight-line method over their estimated useful lives of to ten years. The following table shows the cost, accumulated amortization, and weighted average remaining life for the acquired intangible assets as of December 31, 2025 (in thousands):
|
|
Weighted average remaining life |
|
Gross Carrying Value |
|
|
Accumulated Amortization |
|
|
Net Carrying Value |
|
|||
Developed Technology |
|
10 |
|
$ |
11,890 |
|
|
$ |
(99 |
) |
|
$ |
11,791 |
|
Customer Relationships |
|
6 |
|
|
1,650 |
|
|
|
(23 |
) |
|
|
1,627 |
|
Trademark/Trade Name |
|
1 |
|
|
550 |
|
|
|
(46 |
) |
|
|
504 |
|
Total intangible assets |
|
9.1 |
|
$ |
14,090 |
|
|
$ |
(168 |
) |
|
$ |
13,922 |
|
The table below sets forth amortization expense (in thousands):
|
|
|
|
Year Ended December 31, |
|
|||||
Intangible asset |
|
Location |
|
2025 |
|
|
2024 |
|
||
Developed Technology |
|
Cost of revenue |
|
$ |
99 |
|
|
$ |
- |
|
Customer Relationships |
|
Sales and marketing expenses |
|
|
23 |
|
|
|
- |
|
Trademark/Trade Name |
|
Sales and marketing expenses |
|
|
46 |
|
|
|
- |
|
Total amortization expense |
|
|
|
$ |
168 |
|
|
$ |
- |
|
The estimated future annual amortization of finite-lived intangible assets is shown in the following table. Actual amortization expense to be reported in future periods could differ from these estimates as a result of acquisitions, divestitures, and asset impairments, among other factors.
Year: |
|
Amortization (in thousands) |
|
|
2026 |
|
$ |
1,968 |
|
2027 |
|
|
1,464 |
|
2028 |
|
|
1,464 |
|
2029 |
|
|
1,464 |
|
2030 |
|
|
1,464 |
|
Thereafter |
|
|
6,098 |
|
Total |
|
$ |
13,922 |
|
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.