GIFTIFY, INC. Goodwill & Intangibles Disclosure
4. Goodwill and Intangible Assets
Goodwill and intangible assets consist of the following:
| December 31, 2025 | December 31, 2024 | |||||||
| Goodwill | $ | 20,007,670 | $ | 20,007,670 | ||||
| Intangible Assets | ||||||||
| Customer relationships | $ | 1,700,000 | $ | 1,700,000 | ||||
| Trade name | 2,400,000 | 2,400,000 | ||||||
| Developed technology | 3,091,163 | 2,600,000 | ||||||
| Intangible assets, gross | 7,191,163 | 6,700,000 | ||||||
| Accumulated amortization | (4,703,341 | ) | (2,431,668 | ) | ||||
| Intangible assets, net | $ | 2,487,822 | $ | 4,268,332 | ||||
On December 29, 2023, in relation to the acquisition of CardCash, the Company recorded goodwill of $20,007,670.
During the twelve months ended December 31, 2024, the Company recorded an amortization expense of $2,431,668, leaving a remaining intangible asset balance of $4,268,332 at December 31, 2024. During the year ended December 31, 2025, in connection with the acquisition of Takeout7 (see Note 2), the Company recorded intangible assets of $491,163 and recorded an amortization expense of $2,271,673, leaving a remaining intangible asset balance of $2,487,822 at December 31, 2025.
Identifiable intangibles are amortized over their estimated remaining useful lives, which are as follows:
| Description | Weighted Average Useful Life (in years) | |||
| Customer relationships | 3 | |||
| Trademarks, trade names and service marks | 3 | |||
| Developed technology | 3 | |||
Estimated amortization expense for the Company is as follows:
| 2026 | $ | 2,255,884 | ||
| 2027 | 163,720 | |||
| 2028 | 68,218 | |||
| $ | 2,487,822 |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 18, 2026 | Showing above |
| 2024 | Mar 31, 2025 | |
| 2023 | Apr 9, 2024 | |
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.