NEPHROS INC Goodwill & Intangibles Disclosure
Note 7 – Intangible Assets and Goodwill
Intangible Assets
Intangible assets at December 31, 2025 and December 31, 2024, are set forth in the table below. Gross carrying values and accumulated amortization of the Company’s intangible assets by type are as follows:
| December 31, 2025 | December 31, 2024 | |||||||||||||||||||||||
| Cost | Accumulated Amortization | Net | Cost | Accumulated Amortization | Net | |||||||||||||||||||
| (in thousands) | ||||||||||||||||||||||||
| Customer relationships | $ | 540 | (222 | ) | 318 | 540 | (191 | ) | 349 | |||||||||||||||
| Total intangible assets | $ | 540 | $ | (222 | ) | $ | 318 | $ | 540 | $ | (191 | ) | $ | 349 | ||||||||||
The Company recognized amortization expense of approximately $32,000 for the years ended December 31, 2025, and 2024, respectively, which is included in selling, general, and administrative expenses on the accompanying statement of operations.
As of December 31, 2025, future amortization expense for each of the next five years is (in thousands):
| Fiscal Years | ||||
| 2026 | $ | 32 | ||
| 2027 | 32 | |||
| 2028 | 32 | |||
| 2029 | 32 | |||
| 2030 | 32 | |||
Goodwill
Goodwill had a carrying value on the Company’s balance sheets of $0.8 million at December 31, 2025 and 2024, respectively. The Company concluded the carrying value of goodwill was not impaired as of December 31, 2025, or 2024 as the Company determined that it was not more likely than not that the fair value of goodwill was less than its carrying value.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 12, 2026 | Showing above |
| 2024 | Mar 24, 2025 | |
| 2023 | Mar 15, 2024 | |
| 2022 | Mar 23, 2023 | |
| 2021 | Mar 3, 2022 | |
| 2020 | Mar 1, 2021 | |
| 2019 | Feb 27, 2020 | |
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.