Inogen Inc Goodwill & Intangibles Disclosure
3. Goodwill and other identifiable intangible assets
Goodwill
The changes in the carrying amount of goodwill for the years ended December 31, 2025 and 2024 were as follows:
|
|
|
|
|
Balance as of December 31, 2023 |
|
$ |
10,057 |
|
Translation adjustment |
|
|
(592 |
) |
Balance as of December 31, 2024 |
|
|
9,465 |
|
Translation adjustment |
|
|
1,233 |
|
Balance as of December 31, 2025 |
|
$ |
10,698 |
|
As a result of a decrease in Company’s public stock price that caused the Company's market capitalization to fall below its carrying amount (stockholders' equity) during July 2023 and noted by management to be more than temporary as the quarter progressed, a quantitative analysis was required to be performed during the quarter ended September 30, 2023. The Company used a discounted cash flow analysis based on Level 3 inputs and determined that the goodwill carrying amount exceeded its fair value and, as such, an impairment charge of $32,894 was incurred in the quarter ended September 30, 2023. Accumulated impairment losses were $32,894 as of December 31, 2025, 2024 and 2023.
Intangible assets
There were no impairment losses related to the Company’s intangible assets as of December 31, 2025 and 2024. Amortization expense for intangible assets for the years ended December 31, 2025, 2024 and 2023 was as follows:
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Years ended December 31, |
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|
2025 |
|
|
2024 |
|
|
2023 |
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|||
Research and development expense |
|
$ |
3,390 |
|
|
$ |
3,319 |
|
|
$ |
986 |
|
Sales and marketing expense |
|
|
1,310 |
|
|
|
798 |
|
|
|
155 |
|
General and administrative expense |
|
|
220 |
|
|
|
213 |
|
|
|
61 |
|
Total |
|
$ |
4,920 |
|
|
$ |
4,330 |
|
|
$ |
1,202 |
|
Intangible assets as of December 31, 2025 and 2024 consisted of the following:
|
Average |
|
|
|
|
|
|
|
|
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|||
|
estimated |
|
Gross |
|
|
|
|
|
|
|
|||
|
useful lives |
|
carrying |
|
|
Accumulated |
|
|
|
|
|||
December 31, 2025 |
(in years) |
|
amount |
|
|
amortization |
|
|
Net amount |
|
|||
Developed technology |
10 |
|
$ |
35,424 |
|
|
$ |
8,118 |
|
|
$ |
27,306 |
|
Licenses |
10 |
|
|
159 |
|
|
|
159 |
|
|
|
— |
|
Patents and websites |
5 |
|
|
3,775 |
|
|
|
3,771 |
|
|
|
4 |
|
Customer relationships |
4-10 |
|
|
3,165 |
|
|
|
1,811 |
|
|
|
1,354 |
|
Trade name |
4 |
|
|
219 |
|
|
|
126 |
|
|
|
93 |
|
Commercials |
3 |
|
|
494 |
|
|
|
446 |
|
|
|
48 |
|
Internally developed software |
3 |
|
|
3,707 |
|
|
|
1,749 |
|
|
|
1,958 |
|
Total |
|
|
$ |
46,943 |
|
|
$ |
16,180 |
|
|
$ |
30,763 |
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
|
|
|
|
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|
|||
|
Average |
|
|
|
|
|
|
|
|
|
|||
|
estimated |
|
Gross |
|
|
|
|
|
|
|
|||
|
useful lives |
|
carrying |
|
|
Accumulated |
|
|
|
|
|||
December 31, 2024 |
(in years) |
|
amount |
|
|
amortization |
|
|
Net amount |
|
|||
Developed technology |
10 |
|
$ |
31,342 |
|
|
$ |
4,048 |
|
|
$ |
27,294 |
|
Licenses |
10 |
|
|
159 |
|
|
|
159 |
|
|
|
— |
|
Patents and websites |
5 |
|
|
3,776 |
|
|
|
3,752 |
|
|
|
24 |
|
Customer relationships |
4-10 |
|
|
2,799 |
|
|
|
1,447 |
|
|
|
1,352 |
|
Trade name |
4 |
|
|
194 |
|
|
|
63 |
|
|
|
131 |
|
Commercials |
3 |
|
|
494 |
|
|
|
282 |
|
|
|
212 |
|
Internally developed software |
3 |
|
|
2,090 |
|
|
|
610 |
|
|
|
1,480 |
|
Total |
|
|
$ |
40,854 |
|
|
$ |
10,361 |
|
|
$ |
30,493 |
|
Annual estimated amortization expense for each of the succeeding fiscal years is as follows:
|
|
December 31, |
|
|
|
|
2025 |
|
|
2026 |
|
$ |
5,061 |
|
2027 |
|
|
4,383 |
|
2028 |
|
|
3,814 |
|
2029 |
|
|
3,718 |
|
2030 |
|
|
3,510 |
|
Thereafter |
|
|
10,277 |
|
Total |
|
$ |
30,763 |
|
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.