Fathom Holdings Inc.FTHM

Fathom Holdings Inc. Goodwill & Intangibles Disclosure

10-KFiled Mar 19, 20241 min read
Goodwill
The Company recorded goodwill in connection with the acquisition of Verus which closed in November 2020 and in connection with the acquisitions of Red Barn, E4:9, LiveBy, Epic and Woodhouse which closed in 2021. These acquisitions have been accounted for using the acquisition method accounting. Under the acquisition method of accounting, the Company allocated the total purchase price to the tangible and identifiable intangible assets acquired, and assumed liabilities based on their estimated fair values as of the acquisition date, as determined by management. The excess of the purchase price over the aggregate fair values of the identifiable assets was recorded as goodwill.
The were no changes in the carrying value of goodwill by segment during 2023 as noted in the table below (amount in thousands):
Real Estate
Brokerage		MortgageTechnology
Other1
Total
Balance at December 31, 2023 and 2022$2,690 $10,428 $4,168 $8,321 $25,607 
(1) Other comprises goodwill not assigned to a reportable segment.

Historical Timeline

Fiscal YearFiled
2023Mar 19, 2024Showing above
2022Mar 30, 2023
2021Mar 9, 2022
2020Mar 24, 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.

Other Available Disclosures

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