Genasys Inc. Goodwill & Intangibles Disclosure
9. GOODWILL AND INTANGIBLE ASSETS
Goodwill is attributable to the acquisitions of Genasys Spain, Zonehaven, the Amika Mobile asset purchase, and Evertel, and is due to combining the integrated emergency critical communications, mass messaging solutions and software development capabilities with existing hardware products for enhanced offerings and the skill level of the acquired workforces. The Company periodically reviews goodwill for impairment in accordance with relevant accounting standards. As of September 30, 2025 and September 30, 2024, goodwill was $13,450 and $13,329, respectively. There were no impairments to goodwill during the years ended September 30, 2025 and September 30, 2024.
The changes in the carrying amount of goodwill by segment for the year ended September 30, 2025, were as follows:
|
|
Hardware |
|
|
Software |
|
|
Total |
|
|||
Balance as of September 30, 2023 |
|
$ |
— |
|
|
$ |
10,282 |
|
|
$ |
10,282 |
|
Acquisition |
|
|
— |
|
|
|
2,923 |
|
|
|
2,923 |
|
Currency translation |
|
|
— |
|
|
|
124 |
|
|
|
124 |
|
Balance as of September 30, 2024 |
|
$ |
— |
|
|
$ |
13,329 |
|
|
$ |
13,329 |
|
Currency translation |
|
|
— |
|
|
|
121 |
|
|
|
121 |
|
Balance as of September 30, 2025 |
|
$ |
— |
|
|
$ |
13,450 |
|
|
$ |
13,450 |
|
The changes in the carrying amount of intangible assets by segment for the year ended September 30, 2025, were as follows:
|
|
Hardware |
|
|
Software |
|
|
Total |
|
|||
Balance as of September 30, 2023 |
|
$ |
17 |
|
|
$ |
8,410 |
|
|
$ |
8,427 |
|
Acquisitions |
|
|
— |
|
|
|
2,550 |
|
|
|
2,550 |
|
Amortization |
|
|
(3 |
) |
|
|
(2,475 |
) |
|
|
(2,478 |
) |
Currency translation |
|
|
— |
|
|
|
7 |
|
|
|
7 |
|
Balance as of September 30, 2024 |
|
$ |
14 |
|
|
$ |
8,492 |
|
|
$ |
8,506 |
|
Amortization |
|
|
(2 |
) |
|
|
(2,355 |
) |
|
|
(2,357 |
) |
Currency translation |
|
|
— |
|
|
|
(2 |
) |
|
|
(2 |
) |
Balance as of September 30, 2025 |
|
$ |
12 |
|
|
$ |
6,135 |
|
|
$ |
6,147 |
|
Intangible assets and goodwill related to Genasys Spain are translated from Euro to U.S. dollars at the balance sheet date. The net impact of foreign currency exchange differences arising during the period related to goodwill and intangible assets was an increase of $119.
The Company’s intangible assets consisted of the following:
|
|
September 30, |
|
|||||
|
|
2025 |
|
|
2024 |
|
||
Technology |
|
$ |
14,234 |
|
|
$ |
14,252 |
|
Customer relationships |
|
|
2,063 |
|
|
|
2,081 |
|
Trade name portfolio |
|
|
610 |
|
|
|
617 |
|
Patents |
|
|
72 |
|
|
|
72 |
|
|
|
|
16,979 |
|
|
|
17,022 |
|
Accumulated amortization |
|
|
(10,832 |
) |
|
|
(8,516 |
) |
|
|
$ |
6,147 |
|
|
$ |
8,506 |
|
|
|
Years ended |
|
|||||
|
|
September 30, |
|
|||||
|
|
2025 |
|
|
2024 |
|
||
Amortization expense |
|
$ |
2,357 |
|
|
$ |
2,478 |
|
Estimated amortization expense for the fiscal year ending September 30 was as the follows:
Fiscal year ending September 30, |
|
|
|
|
2026 |
|
$ |
2,221 |
|
2027 |
|
|
2,048 |
|
2028 |
|
|
1,220 |
|
2029 |
|
|
329 |
|
2030 |
|
|
328 |
|
Thereafter |
|
|
1 |
|
Total estimated amortization expense |
|
$ |
6,147 |
|
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.