INTEST CORPINTT
INTEST CORP Goodwill & Intangibles Disclosure
GOODWILL AND INTANGIBLE ASSETS
We have three operating segments which are also our reporting units: Electronic Test, Environmental Technologies and Process Technologies. Goodwill and intangible assets on our Consolidated Balance Sheets are the result of our acquisitions.
Goodwill
The carrying value of our goodwill for the years ended December 31, 2025 and 2024 changed as follows:
| (in thousands) | ||||||||
| Balance - January 1, 2024 | $ | 21,728 | ||||||
Alfamation™ acquisition (Electronic Test segment) | 9,883 | |||||||
| Impact of foreign currency translation adjustments | (867) | |||||||
| Balance - December 31, 2024 | $ | 30,744 | ||||||
| Impact of foreign currency translation adjustments | 1,615 | |||||||
Balance – December 31, 2025 | $ | 32,359 | ||||||
Goodwill by reportable segment was as follows:
| December 31, | ||||||||||||||
| (in thousands) | 2025 | 2024 | ||||||||||||
| Electronic Test | $ | 13,957 | $ | 12,567 | ||||||||||
| Environmental Technologies | 1,817 | 1,817 | ||||||||||||
| Process Technologies | 16,585 | 16,360 | ||||||||||||
| Total goodwill | $ | 32,359 | $ | 30,744 | ||||||||||
Intangible Assets
The carrying value of our intangible assets for the years ended December 31, 2025 and 2024 changed as follows:
| (in thousands) | Finite-Lived | Indefinite-Lived | ||||||||||||
| Balance - January 1, 2024 | $ | 8,198 | $ | 8,398 | ||||||||||
Alfamation™ acquisition | 11,365 | 1,967 | ||||||||||||
| Impact of foreign currency translation adjustments | (817) | (190) | ||||||||||||
| Amortization | (2,545) | — | ||||||||||||
| Balance - December 31, 2024 | $ | 16,201 | $ | 10,175 | ||||||||||
| Impact of foreign currency translation adjustments | 1,517 | 329 | ||||||||||||
| Amortization | (3,346) | — | ||||||||||||
| Balance – December 31, 2025 | $ | 14,372 | $ | 10,504 | ||||||||||
The following tables provide further detail about our intangible assets at December 31, 2025 and 2024:
| December 31, 2025 | ||||||||||||||||||||
| (in thousands) | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||||||||||
| Finite-lived intangible assets: | ||||||||||||||||||||
| Customer relationships | $ | 25,192 | $ | 13,857 | $ | 11,335 | ||||||||||||||
| Technology | 6,279 | 3,242 | 3,037 | |||||||||||||||||
| Patents | 590 | 590 | — | |||||||||||||||||
| Software | 270 | 270 | — | |||||||||||||||||
| Trade name | 140 | 140 | — | |||||||||||||||||
| Total finite-lived intangible assets | 32,471 | 18,099 | 14,372 | |||||||||||||||||
| Indefinite-lived intangible assets: | ||||||||||||||||||||
| Trademarks | 10,504 | — | 10,504 | |||||||||||||||||
| Total intangible assets | $ | 42,975 | $ | 18,099 | $ | 24,876 | ||||||||||||||
| December 31, 2024 | ||||||||||||||||||||
| (in thousands) | Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | |||||||||||||||||
| Finite-lived intangible assets: | ||||||||||||||||||||
| Customer relationships | $ | 23,912 | $ | 11,496 | $ | 12,416 | ||||||||||||||
| Technology | 5,786 | 2,001 | 3,785 | |||||||||||||||||
| Patents | 590 | 590 | — | |||||||||||||||||
| Backlog | 481 | 481 | — | |||||||||||||||||
| Software | 270 | 270 | — | |||||||||||||||||
| Trade name | 140 | 140 | — | |||||||||||||||||
| Total finite-lived intangible assets | 31,179 | 14,978 | 16,201 | |||||||||||||||||
| Indefinite-lived intangible assets: | ||||||||||||||||||||
| Trademarks | 10,175 | — | 10,175 | |||||||||||||||||
| Total intangible assets | $ | 41,354 | $ | 14,978 | $ | 26,376 | ||||||||||||||
The following table sets forth the estimated annual amortization expense for each of the next five years and thereafter at December 31, 2025:
| (in thousands) | ||||||||
| 2026 | $ | 2,598 | ||||||
| 2027 | 2,049 | |||||||
| 2028 | 1,692 | |||||||
| 2029 | 1,358 | |||||||
| 2030 | 1,249 | |||||||
| Thereafter | 5,426 | |||||||
| Total estimated amortization of finite-lived intangible assets | $ | 14,372 | ||||||
Impairment of Goodwill and Indefinite Life Intangible Assets
During October 2025 and 2024, we assessed our goodwill and indefinite life intangible asset for impairment in accordance with the requirements of ASC 350 using a quantitative approach. Our goodwill impairment assessment is based upon the income approach, which estimates the fair value of our reporting units based upon a discounted cash flow approach. This fair value is then reconciled to our market capitalization at year end with an appropriate control premium. The discount rate used in 2025 for the discounted cash flows ranged between 21.0% and 22.5% depending on the reporting unit. The discount rate used in 2024 for the discounted cash flows ranged between 19.5% and 20.5% depending on the reporting unit. The selection of the rates in each year was based upon our analysis of market-based estimates of capital costs and discount rates. The determination of the fair value of our reporting units requires management to make significant estimates and assumptions including the selection of control premiums, discount rates, terminal growth rates, forecasts of revenue and expense growth rates, income tax rates, changes in working capital, depreciation, amortization and capital expenditures. Changes in assumptions concerning future financial results or other underlying assumptions could have a significant impact on either the fair value of the reporting unit or the amount of the goodwill impairment charge.
During the goodwill impairment assessment in both 2025 and 2024, we compared the fair value of our reporting units with their carrying values. This assessment indicated no impairment existed as the fair value of the reporting units exceeded their carrying values in both 2025 and 2024.
During the indefinite life intangible asset impairment assessment in both 2025 and 2024, we compared the fair value of our indefinite life intangible assets with their carrying values. This assessment indicated no impairment existed as the fair value of the indefinite life intangible assets exceeded their carrying values in both 2025 and 2024.
Impairment of Long-Lived Assets and Finite-lived Intangible Assets
As part of the 2025 action to consolidate our Videology operations, we closed our Netherlands facility at the end of 2025, which resulted in the impairment of the long-lived assets at that facility. Those impairment charges were recorded as a component of our restructuring charges. See “Note (16) Restructuring” for further details related to restructuring actions. There were no other events or changes during 2025 and 2024 that would indicate an impairment might exist.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 12, 2026 | Showing above |
| 2024 | Mar 13, 2025 | |
| 2023 | Mar 27, 2024 | |
| 2022 | Mar 22, 2023 | |
| 2021 | Mar 23, 2022 | |
| 2020 | Mar 23, 2021 | |
| 2019 | Mar 23, 2020 | |
| 2018 | Mar 26, 2019 | |
| 2017 | Mar 28, 2018 | |
| 2016 | Mar 27, 2017 | |
| 2015 | Mar 29, 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.