Natural Grocers by Vitamin Cottage, Inc. Goodwill & Intangibles Disclosure
9. Goodwill and Other Intangible Assets
Goodwill and other intangible assets as of September 30, 2025 and 2024, are summarized as follows, dollars in thousands:
|
Useful lives |
As of September 30, |
||||||||||||
|
(in years) |
2025 |
2024 |
|||||||||||
|
Amortizable intangible assets: |
|||||||||||||
|
Internal-use software (1) |
1 | – | 7 | $ | 14,969 | 14,774 | |||||||
|
Other intangibles (1) |
1 | – | 10 | 92 | 92 | ||||||||
|
Amortizable intangible assets |
15,061 | 14,866 | |||||||||||
|
Less accumulated amortization |
(8,929 |
) |
(7,034 |
) |
|||||||||
|
Amortizable intangible assets, net |
6,132 | 7,832 | |||||||||||
|
Internal-use software in process (1) |
21 | 50 | |||||||||||
|
Trademarks |
Indefinite |
389 | 389 | ||||||||||
|
Deferred financing costs, net |
3 | – | 5 | 15 | 19 | ||||||||
|
Total other intangibles, net |
6,557 | 8,290 | |||||||||||
|
Goodwill |
Indefinite |
5,198 | 5,198 | ||||||||||
|
Total goodwill and other intangibles, net |
$ | 11,755 | 13,488 | ||||||||||
(1) Internal-use software at September 30, 2024 has been reclassified from other intangibles to be consistent with the current year presentation.
Amortization expense was $1.9 million, $1.7 million and $1.5 million for the years ended September 30, 2025, 2024 and 2023, respectively.
Future aggregate amortization expense associated with intangible assets for the fiscal years subsequent to 2025 is estimated to be approximately as follows, dollars in thousands:
|
Fiscal year |
Amortization |
|||
|
2026 |
$ | 1,799 | ||
|
2027 |
1,642 | |||
|
2028 |
1,405 | |||
|
2029 |
1,305 | |||
|
2030 |
5 | |||
|
Thereafter |
12 | |||
|
Total amortization expense |
$ | 6,168 | ||
Capitalized costs for internal-use software implementation and development were $0.2 million, $1.1 million and $1.1 million for the years ended September 30, 2025, 2024 and 2023, respectively, primarily due to capitalization of costs incurred related to external consultants.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Dec 11, 2025 | Showing above |
| 2024 | Dec 12, 2024 | |
| 2023 | Dec 7, 2023 | |
| 2022 | Dec 8, 2022 | |
| 2021 | Dec 9, 2021 | |
| 2020 | Dec 10, 2020 | |
| 2019 | Dec 5, 2019 | |
| 2018 | Dec 6, 2018 | |
| 2017 | Dec 7, 2017 | |
| 2016 | Dec 8, 2016 | |
| 2015 | Dec 10, 2015 | |
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.