Montauk Renewables, Inc. Goodwill & Intangibles Disclosure
NOTE 8—GOODWILL AND INTANGIBLE ASSETS, NET
Goodwill and Intangible assets consist of the following as of December 31, 2025 and December 31, 2024:
|
|
December 31, 2025 |
|
|
December 31, 2024 |
|
||
Goodwill |
|
$ |
60 |
|
|
$ |
60 |
|
Intangible assets with indefinite lives: |
|
|
|
|
|
|
||
Land use rights |
|
|
230 |
|
|
|
230 |
|
Total intangible assets with indefinite lives: |
|
$ |
230 |
|
|
$ |
230 |
|
Intangible assets with finite lives: |
|
|
|
|
|
|
||
Interconnection, net of accumulated amortization |
|
$ |
13,972 |
|
|
$ |
14,614 |
|
Customer contracts, net of accumulated |
|
|
5,343 |
|
|
|
3,209 |
|
Total intangible assets with finite lives: |
|
$ |
19,315 |
|
|
$ |
17,823 |
|
Total Goodwill and Intangible assets |
|
$ |
19,605 |
|
|
$ |
18,113 |
|
The weighted average remaining useful life of the customer contracts and interconnections are approximately 12 and 13 years, respectively. Amortization expense was $1,117, $986 and $972 for the years ended December 31, 2025, 2024 and 2023, respectively.
Amortization expense for customer contracts and interconnections for the next five years is as follows:
|
|
Customer |
|
|
Inter- |
|
||
Year ending |
|
Contracts |
|
|
connections |
|
||
2026 |
|
$ |
427 |
|
|
$ |
751 |
|
2027 |
|
|
427 |
|
|
|
751 |
|
2028 |
|
|
427 |
|
|
|
751 |
|
2029 |
|
|
427 |
|
|
|
751 |
|
2030 |
|
|
427 |
|
|
|
751 |
|
Thereafter |
|
|
3,208 |
|
|
|
10,217 |
|
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 11, 2026 | Showing above |
| 2024 | Mar 14, 2025 | |
| 2023 | Mar 14, 2024 | |
| 2022 | Mar 16, 2023 | |
| 2021 | Mar 16, 2022 | |
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.