Enveric Biosciences, Inc. Goodwill & Intangibles Disclosure
NOTE 4. INTANGIBLE ASSETS AND GOODWILL
The Company performs an annual impairment test at the reporting unit level as of December 31 of each fiscal year. As of December 31, 2022, the Company’s goodwill and intangible assets were fully impaired, and thus no annual impairment test was necessary as of December 31, 2023. The following table provides the Company’s goodwill, indefinite and definite lives intangible assets as of December 31, 2023 and 2022.
As of December 31, 2022, the Company’s goodwill consisted of:
| Goodwill | Accumulated Impairment Losses | Currency Translation | Total | |||||||||||||
| Balance at January 1, 2022 | $ | 9,834,855 | $ | (8,225,862 | ) | $ | (21,359 | ) | $ | 1,587,634 | ||||||
| Impairment losses | (1,486,060 | ) | (1,486,060 | ) | ||||||||||||
| Loss on currency translation | (101,574 | ) | (101,574 | ) | ||||||||||||
| Balance at December 31, 2022 | 9,834,855 | (9,711,922 | ) | (122,933 | ) | |||||||||||
As of December 31, 2022, the Company’s indefinite lived intangible assets consisted of:
| Indefinite lived intangible assets | ||||
| Balance at January 1, 2022 | $ | 6,375,492 | ||
| Impairment losses | (5,967,602 | ) | ||
| Loss on currency translation | (407,890 | ) | ||
| Balance at December 31, 2022 | $ |
As of December 31, 2023 and 2022, the definite lived intangible assets consisted of:
| Definite lived intangible assets | ||||
| Balance at January 1, 2022 | $ | 548,436 | ||
| Amortization | (168,750 | ) | ||
| Balance at December 31, 2022 | $ | 379,686 | ||
| Amortization | (168,754 | ) | ||
| Balance at December 31, 2023 | $ | 210,932 |
For identified definite lived intangible assets, amortization expense amounted to $168,754 and $168,750 during the years ended December 31, 2023 and 2022, respectively.
ENVERIC BIOSCIENCES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The Company amortizes definite lived intangible assets on a straight-line basis over their estimated useful lives. Amortization expense of identified intangible assets based on the carrying amount as of December 31, 2023 is as follows:
| Year ending December 31, | ||||
| 2024 | $ | 168,750 | ||
| 2025 | 42,182 | |||
| $ | 210,932 | |||
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2023 | Mar 26, 2024 | Showing above |
| 2022 | Mar 31, 2023 | |
| 2021 | Mar 31, 2022 | |
| 2020 | Apr 1, 2021 | |
| 2018 | Mar 26, 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.