GOODWILL AND INTANGIBLE ASSETS, NET
Identifiable intangible assets
The following tables set forth the components of intangible assets as of December 31, 2025 and 2024:
Estimated
Useful
Life
As of December 31, 2025
Adjusted
Carrying
Amount
Accumulated
Amortization
Net
Patents and copyrights
2-17 years
$375 $(351)$24 
Developed technology5 years400 (400)— 
Software development 5 years2,667 (614)2,053 
$3,442 $(1,365)$2,077 
Estimated
Useful
Life
As of December 31, 2024
Adjusted
Carrying
Amount
Accumulated
Amortization
Net
Patents and copyrights
2-17 years
$375 $(325)$50 
Developed technology5 years400 (387)13 
Software development 5 years2,455 (144)2,311 
$3,230 $(856)$2,374 

The following summarizes amortization of intangible assets included in the Statements of Operations:
Years Ended December 31,
20252024
Cost of revenues$499 $181 
Selling, general and administrative10 10 
Research and development— 58 
$509 $249 
The Company's estimated future amortization expense for intangible assets as of December 31, 2025 was as follows:
2026$549 
2027539 
2028533 
2029389 
203067 
$2,077 
These amounts are subject to change based upon the review of recoverability and useful lives that are performed at least annually.
Goodwill
Goodwill represents the excess of purchase price over the fair value of the assets acquired in businesses combinations. Under ASC 350, goodwill is not amortized, but rather is tested for impairment. The Company’s goodwill balance was $8,102 as of December 31, 2025 and 2024. This goodwill resulted from the acquisitions of Mobilisa, Inc. and Positive Access Corporation.
For the years ended December 31, 2025 and 2024, the Company performed its annual impairment test of goodwill in the fourth quarter. Under authoritative guidance, the Company can use industry and Company specific qualitative factors to determine whether it is more likely than not that impairment exists before performing step one of the quantitative goodwill impairment test. An entity is not required to calculate the fair value of a reporting unit unless the entity determines, based on a qualitative assessment, that it is more likely than not that its fair value is less than its carrying amount. Events or changes in circumstances which could trigger an impairment review include macroeconomic conditions, industry and market conditions, cost factors, overall financial performance, other entity specific events and sustained decrease in share price.
According to ASC 350-20, the Company conducted a qualitative assessment (Step 0) to evaluate goodwill for impairment for the years ended December 31, 2025 and 2024. In the qualitative assessment for the fiscal years ended December 31, 2025 and 2024, the Company found no significant events or circumstances indicating a decline in the value of goodwill. As a result, the fair value of the reporting unit remained above its carrying value as of December 31, 2025 and 2024, and the Company did not proceed with a quantitative assessment for either year.

Historical Timeline

Fiscal YearFiled
2025Mar 19, 2026Showing above
2024Mar 31, 2025
2023Apr 1, 2024
2022Mar 28, 2023
2021Mar 24, 2022
2020Mar 29, 2021
2019Mar 19, 2020
2018Mar 21, 2019
2017Mar 23, 2018
2016Mar 30, 2017
2015Mar 25, 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.