Reliance Global Group, Inc. Goodwill & Intangibles Disclosure
NOTE 5. GOODWILL AND OTHER INTANGIBLE ASSETS
Goodwill: In accordance with ASC 350-20-35-45, all the Company’s goodwill is assigned to a single operating and reporting unit. All acquisitions made by the Company are in one general insurance agency industry and operate in a very similar economic and regulatory environment. The Company’s operations team leadership reports directly to the Chief Executive Officer (“CEO”) on a quarterly basis. Additionally, the CEO who is responsible for the strategic direction of the Company reviews the operations of the insurance agency business collectively, as one segment.
During the year ended December 31, 2025, as further discussed in Note 16 the Company sold the assets of Fortman Insurance Services, Employee Benefits Solutions, LLC, and US Benefits Alliance, LLC. The following table rolls forward the Company’s goodwill balance for the periods ended December 31, 2025, and 2024 showing the effects from the sales on the balance of goodwill.
| Goodwill | ||||
| December 31, 2023, and December 31, 2024 | $ | 6,693,099 | ||
| Goodwill related to the Fortman Sale | (1,131,456 | ) | ||
| Goodwill related to the EBS Sale | (775,088 | ) | ||
| December 31, 2025 | $ | 4,786,555 | ||
Intangible Asset Impairments: During the year ended December 31, 2024, certain intangible assets stemming from discontinued operations which were originally transferred to the Company’s operating entity, were determined to have carrying values exceeding fair value, and thus were considered impaired. These intangible assets consisted of customer relationships, and internally developed and purchased software, with respective net of accumulated amortization asset values of $3,802,438, $65,411, and $54,261. The write-offs resulted in a total asset impairment charge of $3,922,110, recorded in the asset impairment account on the consolidated statements of operations for the year ended December 31, 2024.
The following table sets forth the major categories of the Company’s intangible assets and the weighted-average remaining amortization period as of December 31, 2025:
Weighted Average Remaining Amortization period (Years) | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||||||
| Trade name and trademarks | 0.3 | $ | 1,479,027 | $ | (1,427,398 | ) | $ | 51,629 | ||||||||
| Internally developed software | 1.3 | 1,760,605 | (1,305,944 | ) | 454,661 | |||||||||||
| Customer relationships | 4.2 | 5,384,560 | (2,557,337 | ) | 2,827,223 | |||||||||||
| Non-competition agreements | 0.3 | 2,661,150 | (2,606,683 | ) | 54,467 | |||||||||||
| Total | $ | 11,285,342 | $ | (7,897,362 | ) | $ | 3,387,980 | |||||||||
The following table sets forth the major categories of the Company’s intangible assets and the weighted-average remaining amortization period as of December 31, 2024:
Weighted Average Remaining Amortization period (Years) | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||||||
| Trade name and trademarks | 1.8 | $ | 1,808,087 | $ | (1,586,651 | ) | $ | 221,436 | ||||||||
| Internally developed software | 2.3 | 1,733,817 | (948,706 | ) | 785,111 | |||||||||||
| Customer relationships | 5.8 | 7,372,290 | (3,180,376 | ) | 4,191,914 | |||||||||||
| Purchased software | 2.0 | 565,704 | (563,470 | ) | 2,234 | |||||||||||
| Non-competition agreements | 1.3 | 3,504,810 | (3,281,608 | ) | 223,202 | |||||||||||
| Total | $ | 14,984,708 | $ | (9,560,811 | ) | $ | 5,423,897 | |||||||||
Amortization expense is $1,300,549 and $1,755,721 for the years ended December 31, 2025, and 2024, respectively.
The following table reflects expected amortization expense as of December 31, 2025, for each of the following five years and thereafter:
| Years ending December 31, | Amortization Expense | |||
| 2026 | $ | 960,985 | ||
| 2027 | 627,251 | |||
| 2028 | 545,853 | |||
| 2029 | 466,520 | |||
| 2030 | 376,196 | |||
| Thereafter | 411,175 | |||
| Total | $ | 3,387,980 |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 10, 2026 | Showing above |
| 2024 | Mar 7, 2025 | |
| 2023 | Apr 4, 2024 | |
| 2022 | Mar 30, 2023 | |
| 2021 | Mar 31, 2022 | |
| 2020 | Mar 24, 2021 | |
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.