Data Storage Corp Goodwill & Intangibles Disclosure
Note 5 - Goodwill and Intangible Assets
Goodwill and intangible assets consisted of the following:
| Estimated life in years | Gross amount | December 31, 2024, Accumulated Amortization | Net | |||||||||||||
| Intangible assets not subject to amortization | ||||||||||||||||
| Goodwill | Indefinite | $ | 4,238,671 | $ | — | $ | 4,238,671 | |||||||||
| Trademarks | Indefinite | 514,268 | — | 514,268 | ||||||||||||
| — | ||||||||||||||||
| Total intangible assets not subject to amortization | 4,752,939 | — | 4,752,939 | |||||||||||||
| Intangible assets subject to amortization | ||||||||||||||||
| Customer lists | 7 | 2,614,099 | 1,701,361 | 912,738 | ||||||||||||
| ABC acquired contracts | 5 | 310,000 | 310,000 | — | ||||||||||||
| SIAS acquired contracts | 5 | 660,000 | 660,000 | — | ||||||||||||
| Non-compete agreements | 4 | 272,147 | 272,147 | — | ||||||||||||
| Website and Digital Assets | 3 | 33,002 | 33,002 | |||||||||||||
| Total intangible assets subject to amortization | 3,889,248 | 2,976,510 | 912,738 | |||||||||||||
| Total Goodwill and Intangible Assets | $ | 8,642,187 | $ | 2,976,510 | $ | 5,665,677 | ||||||||||
Scheduled amortization over the next four years are as follows:
| Twelve months ending December 31, | |||||
| 2025 | $ | 267,143 | |||
| 2026 | 267,143 | ||||
| 2027 | 267,143 | ||||
| 2028 | 111,309 | ||||
| Total | $ | 912,738 | |||
Amortization expense for the years ended December 31, 2024, and 2023 was $271,078 and $277,560, respectively.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2024 | Mar 31, 2025 | Showing above |
| 2023 | Mar 28, 2024 | |
| 2022 | Mar 31, 2023 | |
| 2021 | Mar 31, 2022 | |
| 2020 | Mar 31, 2021 | |
| 2019 | Apr 14, 2020 | |
| 2018 | Apr 1, 2019 | |
| 2017 | Apr 17, 2018 | |
| 2016 | Apr 18, 2017 | |
| 2015 | Mar 30, 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.