Grace Therapeutics, Inc.GRCE

Grace Therapeutics, Inc. Goodwill & Intangibles Disclosure

10-KFiled Jun 23, 20252 min read
6. Intangible assets and goodwill
 
Individual IPR&D projects and goodwill are tested for impairment on an annual basis in the fourth quarter, and in between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of each technology or our reporting unit below its carrying value. The impairment assessments resulted in the following activity during the years ended March 31, 2025 and 2024:
 
                
   
GTx-104
    
GTx-102
    
GTx-101
    
Total
 
   $    $    $    $ 
Intangible assets – in-process research and development
                   
Balance, March 31, 2023
  27,595    9,196    4,337    41,128 
Impairment
   —      —      —      —  
Balance, March 31, 2024
  27,595    9,196    4,337    41,128 
Impairment
   —      —      —      —  
Balance, March 31, 2025
  27,595    9,196    4,337    41,128 
 
       
  $  
Goodwill
   
Balance, March 31, 2023
  8,138  
Impairment
  —  
Balance, March 31, 2024
  8,138  
Impairment
  —  
Balance, March 31, 2025
  8,138  
The Company's IPR&D projects, consistent with others in our industry, have risks and uncertainties associated with the timely and successful completion of the development and commercialization of product candidates, including our ability to confirm safety and efficacy based on data from clinical trials, our ability to obtain necessary regulatory approvals and our ability to successfully complete these tasks within budgeted costs. It is not permitted to market a human therapeutic without obtaining regulatory approvals, and such approvals require the completion of clinical trials that demonstrate that a product candidate is safe and effective. In addition, the availability and extent of coverage and reimbursement from third-party payers, including government healthcare programs and private insurance plans as well as competitive product launches, affect the revenues a product can generate. Consequently, the eventual realized values, if any, of acquired IPR&D projects may vary from their estimated fair values.

Historical Timeline

Fiscal YearFiled
2025Jun 23, 2025Showing above
2023Jun 23, 2023
2022Jun 21, 2022
2021Jun 22, 2021
2020Jun 29, 2020

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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