FLEXIBLE SOLUTIONS INTERNATIONAL INC Goodwill & Intangibles Disclosure
7. GOODWILL AND INTANGIBLE ASSETS
Goodwill and intangibles assets, all of which relates to the acquisition of ENP Investments in 2018, at December 31, 2024 and 2023 consisted of the following:
| December 31, 2024 | December 31, 2023 | |||||||
| Goodwill | $ | 2,534,275 | $ | 2,534,275 | ||||
| Intangibles Assets: | ||||||||
| Indefinite lived – trade secrets and trademarks | 770,000 | 770,000 | ||||||
| Definite lived – customer lists | 2,350,000 | 2,350,000 | ||||||
| Accumulated amortization on definite-lived intangibles assets | (1,000,000 | ) | (840,000 | ) | ||||
| Net definite-lived intangible assets | 1,350,000 | 1,510,000 | ||||||
| Total intangible assets | $ | 2,120,000 | $ | 2,280,000 | ||||
The amount of amortization for 2024 was $160,000 (2023 - $160,000) and was included in cost of sales in the consolidated statements of income and comprehensive income. Estimated amortization expense over the next five years is as follows:
| 2025 | $ | 160,000 | ||
| 2026 | 160,000 | |||
| 2027 | 160,000 | |||
| 2028 | 160,000 | |||
| 2029 | 160,000 |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2024 | Mar 31, 2025 | Showing above |
| 2021 | Mar 29, 2022 | |
| 2020 | Mar 31, 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.