NOTE 6:-          GOODWILL AND OTHER INTANGIBLE ASSETS, NET
 
The Company has $7.5 million of goodwill related to its purchase of AlterG in the third quarter of fiscal year 2023, which has an indefinite life, and is not deductible for tax purposes.
 
As of December 31, 2024, the components of, and changes in, the carrying amount of intangible assets, net, were as follows (in thousands):
 
 
 
Cost
   
December 31,
2024
Accumulated
Amortization
   
December 31,
2024
Impairment
   
 
Intangible Assets, Net
 
Trademark
   
795
     
(369
)
   
(426
)
   
-
 
Technology
   
6,161
     
(2,144
)
   
(4,017
)
   
-
 
Customer relationship - Warranty
   
201
     
(140
)
   
(61
)
   
-
 
Customer relationship - Rental
   
2,102
     
(732
)
   
(1,370
)
   
-
 
Customer relationship - Distribution
   
4,578
     
(1,274
)
   
(3,304
)
   
-
 
Backlog
   
296
     
(296
)
   
-
     
-
 
Total Amortized Intangible Assets
   
14,133
     
(4,955
)
   
(9,178
)
   
-
 
 
During the years ended December 31, 2024 and 2023 the Company recorded amortization expense in the amounts of $3.3 million and $1.6 million, respectively.
 
In the fourth quarter of 2024, the Company identified indicators of impairment related to certain acquired intangible assets, primarily due to lower-than-expected financial performance. Following an impairment analysis, the Company recorded a non-cash impairment charge of $9.2 million related to customer relationships, acquired technology, and trademark. No impairment of intangible assets was recorded for the year ended December 31, 2023.
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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.