LIVE VENTURES IncLIVE

LIVE VENTURES Inc Goodwill & Intangibles Disclosure

10-KFiled Dec 22, 20232 min read
Note 8:    Goodwill
The following table details the Company's goodwill as of September 30, 2023 and 2022 (in 000’s):
Retail - EntertainmentRetail - FlooringFlooring ManufacturingSteel ManufacturingCorporate Total
September 30, 2021$36,947 $— $807 $— $3,717 $41,471 
Additions— — — 3,339 — 3,339 
Impairment— — — — (3,717)(3,717)
September 30, 202236,947 — 807 3,339 — 41,093 
Additions— 30,419 — 4,666 — 35,085 
Fair value adjustments— — — (312)(312)
Impairment— — — — — — 
September 30, 2023$36,947 $30,419 $807 $7,693 $— $75,866 
The Company accounts for purchased goodwill and intangible assets in accordance with ASC 350, Intangibles—Goodwill and Other (see Note 2). Goodwill recognized during the year ended September 30, 2023 was approximately $35.1 million, and was due to the acquisitions of Flooring Liquidators and PMW, partially offset by a $312,000 fair value adjustment to the goodwill of Kinetic. Goodwill recognized during the year ended September 30, 2022 was approximately $3.3 million, and was due to the acquisition of Kinetic.
During the fourth quarter of the year ended September 30, 2022, the Company performed its annual goodwill impairment testing, which resulted in an impairment to SW Financial's goodwill. The results of the impairment test indicated that, due to downturns in the financial market, which caused a reduction in revenue, the carrying value of SW Financial's goodwill exceeded its estimated fair value, and, thus, goodwill was fully impaired. Consequently, as of the year ended September 30, 2022, the Company recorded an impairment charge in the amount of $3.7 million for the full amount of SW Financial's goodwill. SW Financial's operation were shut down during the third quarter of the year ended September 30, 2023 (see Note 3). No such impairment occurred for the year ended September 30, 2023.

Historical Timeline

Fiscal YearFiled
2023Dec 22, 2023Showing above
2022Dec 16, 2022
2021Dec 28, 2021
2020Jan 13, 2021
2019Feb 10, 2020
2018Dec 27, 2018
2016Dec 29, 2016
2015Jan 13, 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.

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