IMMERSION CORP Goodwill & Intangibles Disclosure
8. GOODWILL AND INTANGIBLE ASSETS
Goodwill
We recognized $69.2 million in goodwill as the result of the business combination with Barnes & Noble Education on June 10, 2024. There was no goodwill as of December 31, 2023.
Intangible Assets, net
The following summarizes our intangible assets, excluding goodwill, recorded as intangible assets on our Consolidated Balance Sheets as of April 30, 2025 (in thousands):
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Gross Carrying Amount |
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Accumulated Amortization |
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Net Carrying Amount |
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Weighted-average remaining life (Years) |
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Trade name |
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$ |
45,000 |
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N/A |
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$ |
45,000 |
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Indefinite |
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Customer relationships |
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50,000 |
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(3,419 |
) |
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46,581 |
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12.2 |
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Total |
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$ |
95,000 |
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$ |
(3,419 |
) |
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$ |
91,581 |
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Amortization of finite-lived intangible assets is computed using the straight-line method over their estimated useful lives. Trade name is determined to have an indefinite useful life and is not subject to amortization. Amortization expense was $3.4 million for the fiscal year ended April 30, 2025.
Estimated amortization expense of the intangible assets to be recognized by the Company are (in thousands):
Fiscal Year Ended April 30, |
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2026 |
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$ |
3,846 |
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2027 |
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3,846 |
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2028 |
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3,846 |
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2029 |
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|
3,846 |
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2030 |
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|
3,846 |
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Thereafter |
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|
27,351 |
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Total |
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$ |
46,581 |
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 12, 2026 | Showing above |
| 2016 | Mar 3, 2017 | |
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.