Eledon Pharmaceuticals, Inc. Goodwill & Intangibles Disclosure
Note 7. Goodwill
In 2022, the Company determined that the sustained decrease in our market capitalization constituted an indicator of impairment and as a result, a quantitative goodwill impairment test, utilizing the market approach, determined that the fair value of the reporting unit was below its carrying value and the goodwill was fully impaired.
The Company recorded an impairment of $48.6 million for the year ended December 31, 2022 for the full write-down of the goodwill recorded as part of the acquisition of Anelixis. No impairment was recorded for the year ended December 31, 2023.
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Total |
|
|
|
|
|
|
|
Balance as of December 31, 2021 |
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$ |
48,648 |
|
Impairments |
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|
(48,648 |
) |
Balance as of December 31, 2022 |
|
$ |
— |
|
Impairments |
|
|
— |
|
Balance as of December 31, 2023 |
|
$ |
— |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2023 | Mar 28, 2024 | Showing above |
| 2022 | Mar 30, 2023 | |
| 2021 | Mar 24, 2022 | |
| 2020 | Mar 31, 2021 | |
| 2019 | Mar 17, 2020 | |
| 2018 | Mar 28, 2019 | |
| 2017 | Apr 2, 2018 | |
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.