Note 10. Goodwill

Activity in our goodwill balance, arising largely from our acquisition in 2022 of HX Tracker, a China-based supplier of tracker systems, was as follows:

 

 

 

 

Year ended December 31,

 

(in thousands)

 

 

 

2025

 

 

2024

 

Balance at beginning of period

 

 

 

$

7,139

 

 

$

7,353

 

Translation

 

 

 

 

305

 

 

 

(214

)

Balance at end of period

 

 

 

$

7,444

 

 

$

7,139

 

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Historical Timeline

Fiscal YearFiled
2025Mar 24, 2026Showing above
2024Mar 31, 2025
2023Mar 15, 2024
2022Feb 28, 2023

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.