LifeMD, Inc. Goodwill & Intangibles Disclosure
NOTE 4 – GOODWILL AND INTANGIBLE ASSETS
The Company’s goodwill balance related to the Cleared acquisition was $0 for both the years ended December 31, 2023 and 2022. During the year ended December 31, 2022, the Company recorded an $8.0 million goodwill impairment charge related to a decline in the estimated fair value of Cleared as a result of a decline in the Cleared financial projections.
As of December 31, 2023 and 2022, the Company has the following amounts related to amortizable intangible assets:
| December 31, | Amortizable | |||||||||||
| 2023 | 2022 | Life | ||||||||||
| Amortizable Intangible Assets: | ||||||||||||
| ResumeBuild brand | $ | 4,500,000 | $ | 4,500,000 | 5 years | |||||||
| Customer relationship asset | 1,006,840 | 1,006,840 | 3 years | |||||||||
| Cleared trade name | 133,339 | 133,339 | 5 years | |||||||||
| Cleared developed technology | 12,920 | 12,920 | 1 year | |||||||||
| Purchased licenses | 200,000 | 200,000 | 10 years | |||||||||
| Website domain names | 171,599 | 22,731 | 3 years | |||||||||
| Less: accumulated amortization | (3,015,435 | ) | (2,043,971 | ) | ||||||||
| Total net amortizable intangible assets | $ | 3,009,263 | $ | 3,831,859 | ||||||||
During the year ended December 31, 2022, the Company recorded an $827 thousand impairment loss related to a decline in the estimated fair value of the Cleared customer relationship intangible asset with an original cost of $919 thousand and accumulated amortization of $92 thousand. The aggregate amortization expense of the Company’s intangible assets for the years ended December 31, 2023 and 2022 was $971 thousand and $927 thousand, respectively. Total amortization expense for 2024 through 2025 is approximately $980 thousand per year, 2026 is approximately $940 thousand and for 2027 is approximately $112 thousand.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2023 | Mar 11, 2024 | Showing above |
| 2022 | Mar 22, 2023 | |
| 2021 | Mar 7, 2022 | |
| 2020 | Mar 30, 2021 | |
| 2019 | Mar 30, 2020 | |
| 2018 | Apr 1, 2019 | |
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.