Marygold Companies, Inc. Goodwill & Intangibles Disclosure
| NOTE 8. | GOODWILL |
Goodwill represents the excess of the aggregate purchase price over the fair value of the net assets acquired in business combinations. The amounts recorded in goodwill for June 30, 2023 and 2022 were $2,307,202.
Goodwill is comprised of the following amounts:
| June 30, | June 30, | |||||||
| 2023 | 2022 | |||||||
| Goodwill – Original Sprout | $ | 416,817 | $ | 416,817 | ||||
| Goodwill – Gourmet Foods | 275,311 | 275,311 | ||||||
| Goodwill – Brigadier | 351,345 | 351,345 | ||||||
| Goodwill - Marygold & Co. (UK) | 1,263,729 | 1,263,729 | ||||||
| Total | $ | 2,307,202 | $ | 2,307,202 | ||||
(1) Refer to Note 13, Business Combinations, regarding increase in goodwill during the years ended June 30, 2022.
The Company tests for goodwill impairment at each reporting unit. There was no goodwill impairment for the years ended June 30, 2023 and June 30, 2022.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2023 | Sep 25, 2023 | Showing above |
| 2022 | Sep 28, 2022 | |
| 2021 | Sep 22, 2021 | |
| 2020 | Sep 28, 2020 | |
| 2019 | Sep 30, 2019 | |
| 2018 | Sep 28, 2018 | |
| 2017 | Oct 13, 2017 | |
| 2016 | Oct 21, 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.