OmniAb, Inc.OABI
OmniAb, Inc. Goodwill & Intangibles Disclosure
6. Goodwill and Intangible Assets, Net
Goodwill and intangible assets, net consisted of the following as of December 31, 2025 and 2024:
| December 31, | |||||||||||
| (in thousands) | 2025 | 2024 | |||||||||
| Goodwill | $ | 83,979 | $ | 83,979 | |||||||
Finite-lived intangible assets | |||||||||||
Completed technology | 233,158 | 233,158 | |||||||||
| Less: Accumulated amortization | (110,984) | (98,773) | |||||||||
| Customer relationships | 11,100 | 11,100 | |||||||||
| Less: Accumulated amortization | (8,125) | (7,425) | |||||||||
| Intangible assets, net | $ | 125,149 | $ | 138,060 | |||||||
| Total goodwill and other identifiable intangible assets, net | $ | 209,128 | $ | 222,039 | |||||||
Goodwill
During the year ended December 31, 2025, the Company bypassed the qualitative test and performed a quantitative assessment using a combination of an income and a market approach to determine the fair value of its reporting unit. Under the income approach, fair value was estimated using a discounted cash flow method, which incorporated cash flow projections and a discount rate. The discount rate was developed using a weighted average cost of capital and other market and industry data. Under the market approach, fair value was estimated using a guideline public company method, which incorporated market-based revenue multiples derived from comparable companies. The significant assumptions used in these approaches include projected revenue, the discount rate (inclusive of a company-specific risk premium), and selected revenue multiples, which represented significant unobservable inputs and therefore are classified as Level 3 inputs. To assess the reasonableness of the concluded fair value, the Company also performed a reconciliation to market capitalization, which included an implied control premium and other relevant market considerations.
There were no changes in the carrying amount of goodwill during the years ended December 31, 2025 and 2024.
Intangible Assets
Amortization of finite-lived intangible assets is computed using the straight-line method over the estimated useful life of the asset of up to 20 years and is reflected within “Amortization of intangibles” on the consolidated statements of operations. Amortization expense of $12.9 million and $17.4 million was recognized for the years ended December 31, 2025 and 2024, respectively.
During the year ended December 31, 2024, the Company determined that certain of its finite-lived intangible assets related to the acquisition of Ab Initio in July 2019 were fully impaired, and recorded a $1.2 million write-off of the net carrying value. In addition, the Company recorded a $2.7 million impairment of certain small molecule ion channel intangible assets during the year ended December 31, 2024. The impairment charges were recorded as “” in the consolidated statements of operations. For the year ended December 31, 2025, there was no impairment of intangible assets with finite lives.
The remaining weighted-average useful life of definite lived intangible assets is 10.1 years. At December 31, 2025, future amortization expense on intangible assets is estimated to be as follows (in thousands):
Years Ending December 31, | Amount | |||||||
| 2026 | $ | 12,912 | ||||||
| 2027 | 12,912 | |||||||
| 2028 | 12,912 | |||||||
| 2029 | 12,912 | |||||||
| 2030 | 12,192 | |||||||
| Thereafter | 61,309 | |||||||
Total future amortization expense | $ | 125,149 | ||||||
Gain on Sale of Ion Channel Asset
On May 7, 2025, the Company entered into an Asset Purchase and Assignment Agreement (the “Asset Purchase Agreement”) with Angelini Pharma S.p.A. (“Angelini”). Under the Asset Purchase Agreement, the Company sold, transferred, assigned and conveyed to Angelini, and Angelini purchased, acquired and accepted from the Company, all of the Company’s rights, title and interest in and to the transferred assets, which include among other things the intellectual property and related know-how (collectively, the “Purchased Assets”) generated in connection with the license agreement, dated December 4, 2018, as amended on June 30, 2021, October 21, 2022, and December 22, 2023, by and between F. Hoffmann-La Roche Ltd (“Roche”) and the Company’s subsidiary Icagen, which allowed the Company to receive potential development and commercial milestones and royalties on net sales of any approved products.
The sale qualified as a sale of a non-financial asset and the carrying value of the Purchased Assets as of May 7, 2025 was zero. Cash proceeds from the sale of $3.0 million were recorded to other operating income, net during the year ended December 31, 2025, and included as a part of income from operations in accordance with ASC 610-20, Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 4, 2026 | Showing above |
| 2024 | Mar 18, 2025 | |
| 2023 | Mar 25, 2024 | |
| 2022 | Mar 30, 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.