Goodwill and Intangible Assets, NetGoodwill
The changes in the carrying amounts of goodwill are as follows:
| | | | | |
| Balance at January 1, 2022 | $ | 23,288 | |
| Acquisition of Buttonwood Publishing | 8,019 | |
| Balance at December 31, 2022 | 31,307 | |
| Acquisition of Investor Channel | 85 | |
| Sale of Buttonwood Publishing | (354) | |
| Balance at December 31, 2023 | 31,038 | |
| Acquisition of MMP | 2,522 | |
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| |
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| Disposal of MMP and other Legacy Research Brands | (3,517) | |
| Balance at December 31, 2024 | $ | 30,043 | |
As of December 31, 2024, the Company has three reporting units with goodwill. The reporting units to which goodwill is allocated that have negative carrying amounts are as follows: | | | | | | | | | | | |
| As of December 31, |
| 2024 | | 2023 |
| 1729 Research | $ | 14,190 | | | $ | 13,799 | |
| Alta | 13,005 | | | 11,193 | |
| Brownstone Research | 2,848 | | | — | |
| Legacy Research | — | | | 6,046 | |
| | | |
No goodwill impairment charges have been recorded during the years ended December 31, 2024, 2023 and 2022.
Intangible assets, net
Intangible assets, net consisted of the following as of the dates indicated:
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| December 31, 2024 |
| Cost | | Accumulated Amortization | | Net Book Value | | Weighted-Average Remaining Useful Life (in years) |
| Finite-lived intangible assets: | | | | | | | |
| Customer relationships | $ | 12,443 | | | $ | (11,087) | | | $ | 1,356 | | | 2.1 |
| Tradenames | 3,588 | | | (2,921) | | | 667 | | | 3.2 |
| Capitalized software development costs | 5,262 | | | (3,699) | | | 1,563 | | | 2.8 |
| Finite-lived intangible assets, net | 21,293 | | | (17,707) | | | 3,586 | | | |
| | | | | | | |
| Indefinite-lived intangible assets: | | | | | | | |
| | | | | | | |
| Internet domain names | 1,087 | | | — | | | 1,087 | | | |
| Indefinite-lived intangible assets, net | 1,087 | | | — | | | 1,087 | | | |
| Intangible assets, net | $ | 22,380 | | | $ | (17,707) | | | $ | 4,673 | | | |
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| December 31, 2023 |
| Cost | | Accumulated Amortization | | Net Book Value | | Weighted-Average Remaining Useful Life (in years) |
| Finite-lived intangible assets: | | | | | | | |
| Customer relationships | $ | 12,443 | | | $ | (10,371) | | | $ | 2,072 | | | 3.0 |
| Tradenames | 3,588 | | | (2,611) | | | 977 | | | 3.9 |
| Capitalized software development costs | 4,714 | | | (2,595) | | | 2,119 | | | 3.7 |
| Finite-lived intangible assets, net | 20,745 | | | (15,577) | | | 5,168 | | | |
| | | | | | | |
| Indefinite-lived intangible assets: | | | | | | | |
| | | | | | | |
| Internet domain names | 1,087 | | | — | | | 1,087 | | | |
| Indefinite-lived intangible assets, net | 1,087 | | | — | | | 1,087 | | | |
| Intangible assets, net | $ | 21,832 | | | $ | (15,577) | | | $ | 6,255 | | | |
We recorded amortization expense related to finite-lived intangible assets of $2,522, $3,554 and $2,760 for the years ended December 31, 2024, 2023 and 2022, respectively, within depreciation and amortization in the accompanying consolidated statement of operations. These amounts include amortization of capitalized software development costs of $1,105, $737 and $514 for the years ended December 31, 2024, 2023 and 2022, respectively.
We recorded additions to capitalized software development costs of $542, $1,712 and $135 for the years ended December 31, 2024, 2023 and 2022, respectively.
As of December 31, 2024, the total expected future amortization expense for finite-lived intangible assets is as follows:
| | | | | |
| 2025 | $ | 1,826 | |
| 2026 | 1,335 | |
| 2027 | 279 | |
| 2028 | 91 | |
| 2029 | 53 | |
| Thereafter | 2 | |
| Finite-lived intangible assets, net | $ | 3,586 | |
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.