LIGHTPATH TECHNOLOGIES INC Goodwill & Intangibles Disclosure
7. Goodwill and Intangible Assets
In connection with the December 2016 acquisition of ISP, the Company identified intangible assets, which were recorded at fair value and are being amortized on a straight-line basis over their useful lives. The excess purchase price over the fair values of all identified assets and liabilities was recorded as goodwill, attributable primarily to expected synergies and the assembled workforce of ISP.
The increase in goodwill during the year ended June 30, 2025 was due to the acquisition of G5 Infrared. See Note 3, Acquisitions, to these consolidated financial statements, for more information.
There have been no events or changes in circumstances that indicate the carrying value of goodwill may not be recoverable.
Identifiable intangible assets were comprised of:
|
| Useful Lives (Years) |
|
| June 30, 2025 |
|
| June 30, 2024 |
| |||
Customer relationships |
| 10 - 15 |
|
| $ | 8,852,300 |
|
| $ | 3,712,300 |
| |
Trade secrets |
| 8 - 10 |
|
|
| 8,998,304 |
|
|
| 4,197,304 |
| |
Tradenames |
| 8 - 10 |
|
|
| 7,706,418 |
|
|
| 4,256,418 |
| |
Backlog |
|
| 1 |
|
|
| 824,525 |
|
|
| 463,525 |
|
Total intangible assets |
|
|
|
|
|
| 26,381,547 |
|
|
| 12,629,547 |
|
Less accumulated amortization |
|
|
|
|
|
| (10,393,624 | ) |
|
| (8,978,808 | ) |
Total intangible assets, net |
|
|
|
|
| $ | 15,987,923 |
|
| $ | 3,650,739 |
|
Future amortization of identifiable intangible assets is as follows:
Fiscal year ending: |
|
|
| |
June 30, 2026 |
|
| 1,666,728 |
|
June 30, 2027 |
|
| 1,441,103 |
|
June 30, 2028 |
|
| 1,441,103 |
|
June 30, 2029 |
|
| 1,441,103 |
|
June 30, 2030 |
|
| 1,441,103 |
|
After June 30, 2030 |
|
| 8,556,783 |
|
|
| $ | 15,987,923 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Sep 26, 2025 | Showing above |
| 2024 | Sep 19, 2024 | |
| 2023 | Sep 14, 2023 | |
| 2022 | Sep 15, 2022 | |
| 2021 | Sep 13, 2021 | |
| 2020 | Sep 10, 2020 | |
| 2019 | Sep 12, 2019 | |
| 2018 | Sep 13, 2018 | |
| 2017 | Sep 14, 2017 | |
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.