Goodwill and Intangible Assets

In February 2025 the Company acquired certain assets of a privately held company in a transaction that qualified as a business combination under ASC 805, Business Combinations, for approximately $4.0 million. The acquisition resulted in an increase in goodwill of $2.5 million, which was related to expected synergies of the acquired workforce, and developed technology and other intangible assets of $1.6 million. The business combination was not material to the consolidated financial statements.

There was no change to the goodwill balance during the year ended December 31, 2024. The change in goodwill balance during the year ended December 31, 2025 was as follows (in thousands):


Balance, as of December 31, 2024	$	61,607
Acquisition	2,489
Balance, as of December 31, 2025	$	64,096

Intangible assets, net as of December 31, 2025 and December 31, 2024 were as follows (in thousands, except years):


	December 31, 2025
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Weighted Average Remaining Term (years)
Developed technology	$	4,072	$	(1,895)	$	2,177	2.9
Tradenames	642		(307)		335		5.3
Total	$	4,714	$	(2,202)	$	2,512


	December 31, 2024
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Weighted Average Remaining Term (years)
Developed technology	$	2,512	$	(1,104)	$	1,408	4.6
Tradenames	642		(243)		399		6.3
Total	$	3,154	$	(1,347)	$	1,807

The useful lives of developed technology generally is between three to eight years and trade names generally is over ten years. Amortization expense for the years ended December 31, 2025, 2024, and 2023 was $0.9 million, $0.4 million, $0.4 million, respectively.

As of December 31, 2025, future amortization expense related to the intangible assets was estimated as follows (in thousands):


2026	$	898
2027	898
2028	422
2029	216
2030	64
Thereafter	14
Total	$	2,512

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.

Hinge Health, Inc. Goodwill & Intangibles Disclosure

About Goodwill & Intangibles Disclosures

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