NCS Multistage Holdings, Inc. Goodwill & Intangibles Disclosure
Note 9. Goodwill and Identifiable Intangibles
The carrying amount of goodwill is summarized as follows (in thousands):
| December 31, | December 31, | |||||||
| 2025 | 2024 | |||||||
| Gross value | $ | 177,162 | $ | 177,162 | ||||
| Acquisition | 1,165 | — | ||||||
| Accumulated impairment | (161,940 | ) | (161,940 | ) | ||||
| Net | $ | 16,387 | $ | 15,222 | ||||
We perform an annual impairment analysis of goodwill as of December 31, or whenever there is a triggering event that indicates an impairment loss may have been incurred. If an impairment loss occurs, we disclose such a loss separately in the consolidated statements of operations, as applicable. See “Note 2. Summary of Significant Accounting Policies, Impairments” for additional information. We perform our impairment analysis at a reportable unit level, evaluated separately for Repeat Precision and for the remaining NCS business. During 2025, we recorded goodwill totaling $1.2 million associated with the ResMetrics acquisition, allocated to our tracer diagnostics services group within the NCS reportable unit. See “Note 3. Acquisition”. As of December 31, 2025, goodwill associated with Repeat Precision and the NCS reportable unit totaled $15.2 million and $1.2 million, respectively.
As of December 31, 2025 and 2024, we elected to perform a qualitative assessment for our reportable units with goodwill, and determined it is more likely than not that the goodwill totaling $16.4 million and $15.2 million, respectively, has a fair value that exceeds its net carrying value. Therefore, no goodwill impairment has been recorded for the years ended December 31, 2025 and 2024, respectively.
Identifiable intangibles by major asset class consist of the following (in thousands):
| December 31, 2025 | ||||||||||||||||
| Estimated | ||||||||||||||||
| Useful | Gross | |||||||||||||||
| Lives | Carrying | Accumulated | Net | |||||||||||||
| (Years) | Amount | Amortization | Balance | |||||||||||||
| Technology | 1 - 20 | $ | 4,063 | $ | (1,386 | ) | $ | 2,677 | ||||||||
| Customer relationships | 6 - 10 | 6,800 | (3,843 | ) | 2,957 | |||||||||||
| Trademarks | 5 | 190 | (16 | ) | 174 | |||||||||||
| Non-compete agreements | 5 | 197 | (16 | ) | 181 | |||||||||||
| Total identifiable intangibles | $ | 11,250 | $ | (5,261 | ) | $ | 5,989 | |||||||||
| December 31, 2024 | ||||||||||||||||
| Estimated | ||||||||||||||||
| Useful | Gross | |||||||||||||||
| Lives | Carrying | Accumulated | Net | |||||||||||||
| (Years) | Amount | Amortization | Balance | |||||||||||||
| Technology | 1 - 20 | $ | 3,958 | $ | (1,122 | ) | $ | 2,836 | ||||||||
| Customer relationships | 10 | 4,100 | (3,246 | ) | 854 | |||||||||||
| Total identifiable intangibles | $ | 8,058 | $ | (4,368 | ) | $ | 3,690 | |||||||||
Excluding intangible assets acquired through the ResMetrics business combination in 2025, we did not incur costs to renew or extend the term of acquired intangible assets during the years ended December 31, 2025 and 2024. Prior to the acquisition of ResMetrics, our intangible assets were primarily attributable to Repeat Precision. However, the acquisition has contributed identifiable intangible assets to the tracer diagnostics services group as of December 31, 2025.
Identifiable intangibles are tested for impairment whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. See “Note 2. Summary of Significant Accounting Policies, Impairments” for additional information. As of December 31, 2024, we determined that the carrying value of our indefinite-lived intangible asset was no longer recoverable and the associated fair value was zero. Therefore, we recorded an impairment charge of less than $0.1 million in 2024 to retire this indefinite-lived asset, which was recognized in amortization expense in our consolidated statements of operations. We evaluated potential triggering events and determined there were no triggering events that indicated potential impairment of our identifiable definite-lived intangibles. Therefore, we did record any s related to our identifiable intangibles with definite lives for the years ended December 31, 2025 or 2024, respectively.
Total amortization expense, which is associated with SG&A expenses on the consolidated statements of operations, was $0.9 million and $0.7 million for the years ended December 31, 2025 and 2024, respectively.
The total weighted average amortization period for intangible assets is 10 years and estimated future amortization expense by year is as follows (in thousands):
| 2026 | $ | 1,209 | ||
| 2027 | 834 | |||
| 2028 | 799 | |||
| 2029 | 799 | |||
| 2030 | 767 | |||
| Thereafter | 1,581 | |||
| Total | $ | 5,989 |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 5, 2026 | Showing above |
| 2024 | Mar 10, 2025 | |
| 2023 | Mar 8, 2024 | |
| 2022 | Mar 7, 2023 | |
| 2021 | Mar 8, 2022 | |
| 2020 | Mar 8, 2021 | |
| 2019 | Mar 3, 2020 | |
| 2018 | Mar 8, 2019 | |
| 2017 | Mar 9, 2018 | |
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.