MANNKIND CORP Goodwill & Intangibles Disclosure
8. Goodwill and Other Intangible Assets
Goodwill — Goodwill represents the excess of the purchase price over the identifiable tangible and intangible assets acquired plus liabilities assumed arising from business combinations. Goodwill is tested at least annually for impairment by assessing qualitative factors in determining whether it is more likely than not that the fair value of net assets is below their carrying amounts. Because the Company operates as a reporting segment, goodwill is tested at the consolidated reporting unit level. As of October 1, 2025, our annual impairment test date, we assessed goodwill and no impairment of goodwill was indicated. There was no impairment of goodwill in fiscal years 2025 and 2024. See Note 2 – Summary of Significant Accounting Policies.
In 2022, the Company recorded additions of $1.9 million to Goodwill related to its acquisition of V-Go. In 2025, the Company recorded additions of $65.7 million to Goodwill related to its merger with scPharma. See Note 3 – Business Combinations.
The changes in goodwill for the years ended December 31, 2025 and 2024 were as follows (in thousands):
|
|
Total |
|
|
Goodwill as of December 31, 2023 |
|
$ |
1,931 |
|
Goodwill arising from acquisitions and adjustments |
|
|
— |
|
Goodwill impairment |
|
|
— |
|
Goodwill as of December 31, 2024 |
|
|
1,931 |
|
Goodwill arising from acquisitions and adjustments |
|
|
65,664 |
|
Goodwill impairment |
|
|
— |
|
Goodwill as of December 31, 2025 |
|
$ |
67,595 |
|
Intangible Assets — Intangible assets consisted of the following (dollars in thousands):
|
|
Estimated |
|
|
December 31, 2025 |
|
|
December 31, 2024 |
|
|||||||||||||||||||
|
|
Useful |
|
|
Cost |
|
|
Accumulated |
|
|
Net Book Value |
|
|
Cost |
|
|
Accumulated |
|
|
Net Book Value |
|
|||||||
Developed technology - on-body infusor |
|
|
11.25 |
|
|
|
194,000 |
|
|
|
(3,973 |
) |
|
|
190,027 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
ReadyFlow Formulation – IPR&D |
|
|
— |
|
|
|
129,600 |
|
|
|
— |
|
|
|
129,600 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
iSPERSE License – IPR&D(1) |
|
|
— |
|
|
|
4,300 |
|
|
|
— |
|
|
|
4,300 |
|
|
|
4,300 |
|
|
|
— |
|
|
|
4,300 |
|
Developed technology - V-Go(1) |
|
|
7.5 |
|
|
|
1,200 |
|
|
|
(428 |
) |
|
|
772 |
|
|
|
1,200 |
|
|
|
(235 |
) |
|
|
965 |
|
Total |
|
|
|
|
$ |
329,100 |
|
|
$ |
(4,401 |
) |
|
$ |
324,699 |
|
|
$ |
5,500 |
|
|
$ |
(235 |
) |
|
$ |
5,265 |
|
|
___________________________
Amortization expense related to the Developed technology - V-Go was $0.2 million and $0.1 million for the years ended December 31, 2025 and 2024, respectively. Amortization expense related to the Developed technology - on-body infusor ("on-body infusor") was $4.0 million for the year ended December 31, 2025. The on-body infusor was acquired from scPharma in October 2025. See Note 3 – Business Combinations.
The estimated annual amortization expense for the Company's developed technology is as follows (in thousands):
|
|
December 31, 2025 |
|
|
2026 |
|
|
17,468 |
|
2027 |
|
|
17,468 |
|
2028 |
|
|
17,468 |
|
2029 |
|
|
17,468 |
|
2030 |
|
|
17,275 |
|
Thereafter |
|
|
103,651 |
|
Total |
|
|
190,799 |
|
The iSPERSE License – IPR&D is an indefinite-lived intangible asset, and as such is not amortized but rather is tested for impairment annually, or when facts or circumstances indicate the carrying value of the asset may not be recoverable. Upon completion of the underlying R&D efforts, the intangible asset will be accounted for as a finite-lived intangible asset. If the R&D efforts are abandoned, the IPR&D asset balance will be written off to R&D expense. The iSPERSE License – IPR&D was acquired from Pulmatrix in July 2024. See Note 3 – Business Combinations.
The ReadyFlow Formulation is an indefinite-lived intangible asset, and as such is not amortized but rather is tested for impairment when facts or circumstances indicate the carrying value of the asset may not be recoverable. Once available for use, the intangible asset will be accounted for as a finite-lived intangible asset. If the R&D efforts are abandoned, the IPR&D asset balance will be written off to R&D expense. The ReadyFlow Formulation was acquired from scPharma in October 2025. See Note 3 – Business Combinations.
The Company evaluates its other intangible assets for potential impairment when events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. See Note 2 – Summary of Significant Accounting Policies.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Feb 26, 2025 | |
| 2023 | Feb 27, 2024 | |
| 2022 | Feb 23, 2023 | |
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.