HUDSON TECHNOLOGIES INC /NY Goodwill & Intangibles Disclosure
Note 8 – Goodwill and intangible assets
Goodwill represents the excess of the purchase price over the fair value of the net assets acquired in business combinations accounted for under the purchase method of accounting.
There were no goodwill impairment losses recognized for the years ended December 31, 2025, 2024 and 2023.
Based on the results of the impairment assessments of goodwill and intangible assets performed, management concluded that the fair value of the Company’s goodwill exceeds the carrying value and that there is no impairment related to intangible assets.
The change in the book value of goodwill is as follows:
(in thousands) | | Total | |
Balance as of December 31, 2023 |
| 47,803 | |
Acquisitions |
| 14,477 | |
Balance as of December 31, 2024 |
| 62,280 | |
Acquisitions |
| 3,002 | |
Balance as of December 31, 2025 | $ | 65,282 | |
The Company’s other intangible assets consist of the following:
December 31, 2025 | December 31, 2024 | |||||||||||||||||||
Amortization | Gross | Gross | ||||||||||||||||||
Period | Carrying | Accumulated | Carrying | Accumulated | ||||||||||||||||
(in thousands) | | (in years) | | Amount | | Amortization | | Net | | Amount | | Amortization | | Net | ||||||
Intangible assets with determinable lives |
| | ||||||||||||||||||
Covenant not to compete |
| 5 – 10 | 990 | 888 |
| 102 | 930 | 876 |
| 54 | ||||||||||
Customer relationships |
| 2 – 12 |
| 32,790 |
| 23,179 |
| 9,611 |
| 32,680 |
| 20,246 |
| 12,434 | ||||||
Above market leases |
| 13 |
| 567 |
| 366 |
| 201 |
| 567 |
| 321 |
| 246 | ||||||
Trade name | 5 | 1,860 | 480 | 1,380 | 1,540 | 174 | 1,366 | |||||||||||||
Total identifiable intangible assets | $ | 36,207 | $ | 24,913 | $ | 11,294 | $ | 35,717 | $ | 21,617 | $ | 14,100 | ||||||||
The amortization of intangible assets for the years ended December 31, 2025, 2024 and 2023, were $3.3 million, $3.4 million and $2.8 million, respectively. Future estimated amortization expense is as follows: 2026 - $3.2 million, 2027- $3.0 million, 2028-$2.9 million, 2029-$2.1 million, and 2030-$0.1 million.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 16, 2026 | Showing above |
| 2024 | Mar 12, 2025 | |
| 2023 | Mar 14, 2024 | |
| 2022 | Mar 14, 2023 | |
| 2021 | Mar 24, 2022 | |
| 2020 | Mar 12, 2021 | |
| 2019 | Mar 13, 2020 | |
| 2018 | Mar 15, 2019 | |
| 2017 | Mar 16, 2018 | |
| 2016 | Mar 10, 2017 | |
| 2015 | Mar 11, 2016 | |
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.