Great Elm Group, Inc. Goodwill & Intangibles Disclosure
8. Identifiable Intangible Assets, Net
The following table is a summary of the Company’s intangible assets as of June 30, 2025 and 2024:
|
|
As of June 30, 2025 |
|
|
As of June 30, 2024 |
|
||||||||||||||||||
(in thousands) |
|
Gross Carrying |
|
|
Accumulated |
|
|
Net Carrying |
|
|
Gross Carrying |
|
|
Accumulated |
|
|
Net Carrying |
|
||||||
Investment management agreements |
|
$ |
15,264 |
|
|
$ |
(5,731 |
) |
|
$ |
9,533 |
|
|
$ |
15,264 |
|
|
$ |
(4,781 |
) |
|
$ |
10,483 |
|
Assembled workforce |
|
|
1,103 |
|
|
|
(632 |
) |
|
|
471 |
|
|
|
1,103 |
|
|
|
(549 |
) |
|
|
554 |
|
Customer related |
|
|
1,610 |
|
|
|
(43 |
) |
|
|
1,567 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Licenses |
|
|
450 |
|
|
|
(12 |
) |
|
|
438 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Identifiable intangible assets, net |
|
$ |
18,427 |
|
|
$ |
(6,418 |
) |
|
$ |
12,009 |
|
|
$ |
16,367 |
|
|
$ |
(5,330 |
) |
|
$ |
11,037 |
|
During the years ended June 30, 2025 and 2024, the Company recorded amortization expense of $1.1 million and $1.1 million, respectively, within depreciation and amortization on the consolidated statements of operations.
The following table provides the estimated aggregate amortization expense for each of the five succeeding fiscal years and thereafter:
(in thousands) |
|
Estimated Future Amortization Expense |
|
|
For the year ending June 30, 2026 |
|
$ |
1,130 |
|
For the year ending June 30, 2027 |
|
|
1,096 |
|
For the year ending June 30, 2028 |
|
|
1,068 |
|
For the year ending June 30, 2029 |
|
|
1,045 |
|
For the year ending June 30, 2030 |
|
|
1,027 |
|
Thereafter |
|
|
6,643 |
|
Total |
|
$ |
12,009 |
|
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.