Cosmos Health Inc. Goodwill & Intangibles Disclosure
NOTE 5 – INTANGIBLE ASSETS
Intangible assets consist of the following at December 31, 2025 and 2024:
|
| 2025 |
|
| 2024 |
| ||
License |
| $ | 8,180,160 |
|
| $ | 7,257,938 |
|
Trade name / mark |
|
| 355,200 |
|
|
| 390,188 |
|
Customer base |
|
| 626,397 |
|
|
| 626,397 |
|
Software |
|
| 1,270,937 |
|
|
| 1,113,840 |
|
|
|
| 10,432,694 |
|
|
| 9,388,363 |
|
Less: Accumulated amortization & impairment |
|
|
|
|
|
|
|
|
License |
|
| (2,063,556 | ) |
|
| (1,117,341 | ) |
Trade name / mark |
|
| (36,997 | ) |
|
| (36,997 | ) |
Customer base |
|
| (457,259 | ) |
|
| (174,279 | ) |
Software |
|
| (354,884 | ) |
|
| (352,909 | ) |
Subtotal |
|
| 7,519,998 |
|
|
| 7,706,837 |
|
Goodwill |
|
| 49,697 |
|
|
| 49,697 |
|
Total |
| $ | 7,569,695 |
|
| $ | 7,756,534 |
|
Amortization expense was $925,110 and $793,836 for the years ended December 31, 2025, and 2024, respectively. In addition, the Company recorded an impairment charge for the year ended December 31, 2025 of $162,785 primarily related to an e-shop of our subsidiary Cosmofarm S.A., and certain generic pharmaceutical licenses for which future cash flows could not support the carrying amounts. For the year ended December 31, 2024, an impairment charge of $291,980 was recorded relating to certain branded pharmaceuticals purchased by Doc Pharma S.A. and the telehealth platform of Zip Doctor Inc., which the Company does not currently intend to utilize or launch. These impairments were recognized due to indications of diminished recoverability based on management’s assessment of market conditions and expected future cash flows. On December 31, 2025, the estimated aggregate amortization expense for intangible assets subject to amortization for each of the five succeeding fiscal years is as follows:
Year |
| Amount |
| |
2026 |
| $ | 935,541 |
|
2027 |
|
| 935,205 |
|
2028 |
|
| 935,166 |
|
2029 |
|
| 915,391 |
|
2030 |
|
| 900,529 |
|
Thereafter |
|
| 2,542,966 |
|
Sum |
| $ | 7,164,798 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Apr 15, 2026 | Showing above |
| 2024 | Apr 15, 2025 | |
| 2023 | Aug 5, 2024 | |
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.