Dominari Holdings Inc. Goodwill & Intangibles Disclosure
Note 7. Intangible Assets
Patent Portfolio
The Company’s intangible assets with finite lives consist of its patents and patent rights. For all periods presented, all of the Company’s identifiable intangible assets were subject to amortization. The net carrying amounts related to acquired intangible assets are as follows ($ in thousands):
| Net Carrying Amount | Weighted
average amortization period (years) |
|||||||
| Patent Portfolios and Patent Rights at December 31, 2016, net | $ | 4,951 | 3.65 | |||||
| Amortization expenses | (1,373 | ) | ||||||
| Patent Portfolios and Patent Rights at December 31, 2017, net | $ | 3,578 | 2.67 | |||||
| Amortization expenses | (1,405 | ) | ||||||
| Impairment loss | (2,173 | ) | ||||||
| Patent Portfolios and Patent Rights at December 31, 2018, net | $ | — | — | |||||
The Company reviews its patent portfolio for impairment as a single asset group whenever events or changes in circumstances indicate that the carrying value may not be recoverable.
The Company reviews its patent portfolio for impairment as a single asset group whenever events or changes in circumstances indicate that the carrying value may not be recoverable. During the year ended 2018, the Company determined that certain events occurred that were indicators of a potential impairment. In accordance with ASC 360-10, the Company first estimated the future undiscounted cash flows anticipated to be generated by the patent portfolio based on the Company’s current usage and future plans for the patent portfolio over its remaining weighted average useful life. Given the short-term nature of the patents the undiscounted cash flows approximate discounted cash flows. The analysis concluded that the carrying amount of the patent portfolio was not recoverable. The Company recorded a $2.2 million impairment charge against its patent portfolio to write off the entire remaining balance of the intangible assets during the year ended December 31, 2018.
There was no impairment charges recorded during the year ended December 31, 2017.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2018 | Mar 12, 2019 | Showing above |
| 2017 | Mar 30, 2018 | |
| 2016 | Mar 31, 2017 | |
| 2015 | Mar 29, 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.