INTELLIGENT BIO SOLUTIONS INC. Goodwill & Intangibles Disclosure
NOTE 10. INTANGIBLE ASSETS, NET
Intangible assets, net consist of the following as June 30, 2025:
| Weighted average useful lives (years) |
Remaining weighted average useful lives (years) | Acquisition cost | Effect of foreign currency | Accumulated amortization | Carrying value | ||||||||||||||
| Technology | 7 years | 4.25 years | $ | 5,119,000 | $ | 1,089,182 | $ | 2,554,906 | $ | 3,653,276 | |||||||||
| Customer relationships | 3 years | 0.25 years | 252,000 | 53,619 | 280,151 | 25,468 | |||||||||||||
| Trade names and trademarks | Indefinite | Indefinite | 92,000 | 19,575 | 111,575 | ||||||||||||||
| Total intangible assets | $ | 5,463,000 | $ | 1,162,376 | $ | 2,835,057 | $ | 3,790,319 | |||||||||||
Intangible assets, net consist of the following as of June 30, 2024:
| Weighted average useful lives (years) | Remaining weighted average useful lives (years) | Acquisition cost | Effect of foreign currency | Accumulated amortization | Carrying value | ||||||||||||||
| Technology | 7 years | 5.25 years | $ | 5,119,000 | $ | 593,026 | $ | 1,559,822 | $ | 4,152,204 | |||||||||
| Customer relationships | 3 years | 1.25 years | 252,000 | 29,194 | 164,030 | 117,164 | |||||||||||||
| Trade names and trademarks | Indefinite | Indefinite | 92,000 | 10,658 | 102,658 | ||||||||||||||
| Total intangible assets | $ | 5,463,000 | $ | 632,878 | $ | 1,723,852 | $ | 4,372,026 | |||||||||||
Intangible assets recognized from the acquisition of IFP were allocated to the United Kingdom operating and reportable segment.
The cumulative balance of the accumulated amortization as of June 30, 2025 and 2024 was $ 2,835,057 and $1,723,852 respectively.
Expense related to the amortization of intangible assets charged to the consolidated statements of operations and other comprehensive income (loss) for the years ended June 30, 2025 and 2024 was $949,288 and $947,436, respectively.
Amortization expense for the intangible assets is expected to be as follows over the next five years, and thereafter:
| 2026 | $ | 885,062 | ||
| 2027 | 859,594 | |||
| 2028 | 859,594 | |||
| 2029 | 859,594 | |||
| 2030 | 214,900 | |||
| Total | $ | 3,678,744 | ||
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.