FUELCELL ENERGY INC Goodwill & Intangibles Disclosure
Note 9. Goodwill and Intangible Assets
As of October 31, 2024, the Company had goodwill of $4.1 million and intangible assets of $14.8 million that were recorded in connection with the Company’s 2012 acquisition of Versa Power Systems, Inc. (“Versa Inc.”) and the 2019 Bridgeport Fuel Cell Project acquisition.
The Versa Inc. acquisition intangible asset represented indefinite-lived IPR&D for cumulative research and development efforts associated with the development of solid oxide fuel cell stationary power generation. As a result of the restructuring plan undertaken by the Company in June 2025, which ceased certain commercialization and capacity expansion activities related to its solid oxide technology primarily performed by the Versa reporting unit, the Company recognized impairment expenses equal to the carrying value of the goodwill in Versa Inc. of $4.1 million, and impairment expenses equal to the carrying value of the IPR&D intangible assets in Versa Inc. of $9.3 million during the year ended October 31, 2025. See Note 4. “Impairment and Restructuring” for additional information regarding the restructuring plan and the impairment expenses. Additionally, there were no impairments of goodwill or the IPR&D intangible asset during the years ended October 31, 2024 and 2023.
As of October 31, 2025, the Company had intangible assets of $3.9 million that were recorded in connection with the 2019 Bridgeport Fuel Cell Project acquisition.
Amortization expense for the Bridgeport Fuel Cell Project-related intangible asset was $1.3 million for each of the years ended October 31, 2025, 2024 and 2023.
The following tables summarize the Company’s intangible assets as of October 31, 2025 and 2024 (in thousands):
As of October 31, 2025 | | Gross Amount | | Accumulated | | Net Amount | |||
In-Process Research and Development | $ | - | $ | - | $ | - | |||
Bridgeport PPA | 12,320 | (8,429) | 3,891 | ||||||
Total | $ | 12,320 | $ | (8,429) | $ | 3,891 | |||
As of October 31, 2024 | | Gross Amount | | Accumulated | | Net Amount | |||
In-Process Research and Development | $ | 9,592 | $ | - | $ | 9,592 | |||
Bridgeport PPA | 12,320 | (7,133) | 5,187 | ||||||
Total | $ | 21,912 | $ | (7,133) | $ | 14,779 | |||
Amortization expense is recorded on a straight-line basis and future amortization expense will be $1.3 million per year until the Bridgeport PPA is fully amortized.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Dec 18, 2025 | Showing above |
| 2024 | Dec 27, 2024 | |
| 2023 | Dec 19, 2023 | |
| 2022 | Dec 20, 2022 | |
| 2021 | Dec 29, 2021 | |
| 2020 | Jan 21, 2021 | |
| 2019 | Jan 22, 2020 | |
| 2018 | Jan 10, 2019 | |
| 2017 | Jan 11, 2018 | |
| 2016 | Jan 12, 2017 | |
| 2015 | Jan 8, 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.