FULL HOUSE RESORTS INC Goodwill & Intangibles Disclosure
5. GOODWILL AND OTHER INTANGIBLES
Goodwill:
The following table sets forth changes in the carrying value of goodwill by segment:
(In thousands) | Contracted | |||||||||||
Sports | ||||||||||||
Midwest & South | West | Wagering | Total Goodwill, Net | |||||||||
Balance, January 1, 2024 | $ | 14,671 | $ | 6,615 | $ | — | $ | 21,286 | ||||
Goodwill related to assets held for sale(1) | — | (1,809) | — | (1,809) | ||||||||
Balance, December 31, 2024 | 14,671 | 4,806 | — | 19,477 | ||||||||
Account activity | — | — | — | — | ||||||||
Balance, December 31, 2025 | $ | 14,671 | $ | 4,806 | $ | — | $ | 19,477 | ||||
__________
| (1) | Related to assets held for sale at Stockman’s (see Note 3). |
Other Intangible Assets:
The following tables set forth changes in the carrying value of intangible assets other than goodwill:
(In thousands) | December 31, 2025 | |||||||||||||
| Weighted Useful | | Gross | | | | Other | |||||||
Life Remaining | Carrying | Accumulated | Intangible | |||||||||||
(in years) | Value | Additions | Amortization | Assets, Net | ||||||||||
Land Lease and Water Rights |
| 32.3 | $ | 1,420 | $ | — | $ | (410) | $ | 1,010 | ||||
Development Agreement | 3.3 | 275 | — | (93) | 182 | |||||||||
Gaming Licenses | 9.0 | 555 | — | (79) | 476 | |||||||||
Gaming Licenses |
| Indefinite |
| 92,404 |
| 12,919 |
| — |
| 105,323 | ||||
Trade Names |
| Indefinite |
| 1,800 |
| — |
| — |
| 1,800 | ||||
Trademarks |
| Indefinite |
| 124 |
| — |
| — |
| 124 | ||||
$ | 96,578 | $ | 12,919 | $ | (582) | $ | 108,915 | |||||||
(In thousands) | December 31, 2024 | |||||||||||||
| Weighted Useful | | Gross | | | | Other | |||||||
Life Remaining | Carrying | Accumulated | Intangible | |||||||||||
(in years) | Value | Additions | Amortization | Assets, Net | ||||||||||
Land Lease and Water Rights |
| 33.3 | $ | 1,420 |
| $ | — |
| $ | (381) |
| $ | 1,039 | |
Development Agreement | 4.3 | 275 | — | (38) | 237 | |||||||||
Gaming Licenses |
| 10.0 |
| 555 |
| — |
| (26) |
| 529 | ||||
Gaming Licenses | Indefinite | 72,443 | 19,961 | — | 92,404 | |||||||||
Trade Names |
| Indefinite |
| 1,800 |
| — |
| — |
| 1,800 | ||||
Trademarks |
| Indefinite |
| 124 |
| — |
| — |
| 124 | ||||
$ | 76,617 | $ | 19,961 | $ | (445) | $ | 96,133 | |||||||
There were no impairments to goodwill or other intangible assets during 2024 and 2025.
Land Lease Acquisition Costs and Water Rights. Upon its acquisition by the Company in 2012, Silver Slipper recognized intangible assets related to its lease agreement with Cure Land Company, LLC (see Note 8). The lease was valued at $970,000 and represents the excess fair value of the land over the estimated net present value of the land lease payments, and the water rights value of $450,000 represents the fair value of the water rights based upon market rates in Hancock County, Mississippi.
Development Agreement. Chamonix recognized an intangible asset related to its payment of $275,000 in 2023 under a agreement with a third party to develop and operate its high-end steakhouse under certain exclusivity provisions. Amortization began upon the commencement of operations in April 2024.
Gaming Licenses. Gaming licenses primarily represent the value of the license to conduct gaming in certain jurisdictions, which are subject to highly extensive regulatory oversight and, in some cases, a limitation on the number of licenses available for issuance. The values of gaming licenses were primarily estimated using a multi-period excess earning method of the income approach, which examines the economic returns contributed by the identified tangible and intangible assets of a company, and then isolates the excess return, which is attributable to the asset being valued, based on cash flows attributable to the gaming license.
During 2023, a gaming license payment of $50.3 million was required to open American Place. Starting on December 31, 2023, additional accruals have been made quarterly to the estimated cost of such acquisition, reflecting the contingent component of an additional one-time gaming license fee in Illinois (see Note 10).
Trade Names. Trade names represent the value of the Bronco Billy’s casino name, which has existed for approximately 34 years and provides brand recognition. The value was estimated using a relief-from-royalty method of the income approach based upon comparable trade name royalty agreements.
Current and Future Amortization. Intangible asset amortization expense was approximately $137,000 and $99,000 for the years ended December 31, 2025 and 2024, respectively.
Future amortization expense for intangible assets is as follows:
(In thousands) | |||
For Years ending December 31, | | Amortization Expense | |
2026 | $ | 139 | |
2027 |
| 139 | |
2028 |
| 139 | |
2029 |
| 101 | |
2030 |
| 84 | |
Thereafter |
| 1,066 | |
$ | 1,668 | ||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 16, 2026 | Showing above |
| 2024 | Mar 11, 2025 | |
| 2023 | Mar 15, 2024 | |
| 2022 | Mar 16, 2023 | |
| 2021 | Mar 15, 2022 | |
| 2020 | Mar 12, 2021 | |
| 2019 | Mar 30, 2020 | |
| 2018 | Mar 14, 2019 | |
| 2017 | Mar 8, 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.