FONAR CORP Goodwill & Intangibles Disclosure
Other Intangible Assets
1) Patents and Copyrights
Patent and copyrights are professional costs incurred to acquire certain patent and copyrights. Amortization is calculated on the straight-line basis over 15 years.
2) Non-Competition Agreements
The non-competition agreements are agreements entered into with past principal owners of entities that the Company had acquired. The non-competition agreements are being amortized on the straight-line basis over the length of the agreement (7 years).
3) Customer Relationships
Customer relationships represents customer lists acquired in acquisition of prior entities. Amortization is calculated on the straight-line basis over 20 years.
4) Software License
Software license represents a license to improve the image quality and efficiency of the MRI scanners. Amortization is calculated on the straight-line basis over 3 years.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Sep 22, 2025 | Showing above |
| 2021 | Oct 13, 2021 | |
| 2020 | Oct 1, 2020 | |
| 2019 | Sep 30, 2019 | |
| 2018 | Sep 21, 2018 | |
| 2017 | Sep 27, 2017 | |
| 2016 | Sep 28, 2016 | |
| 2015 | Sep 29, 2015 | |
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.