OLB GROUP, INC. Goodwill & Intangibles Disclosure
NOTE 4 – INTANGIBLE ASSETS
Intangible assets consist of the following:
| December 31, 2023 | December 31, 2022 | |||||||
| Merchant portfolios | $ | 2,409,965 | $ | 2,405,000 | ||||
| Less accumulated amortization | (2,322,182 | ) | (1,793,333 | ) | ||||
| Net residual portfolios | $ | 87,783 | $ | 611,667 | ||||
| Trade name | $ | 2,500,000 | $ | 2,500,000 | ||||
| Less accumulated amortization | (2,500,000 | ) | (2,000,000 | ) | ||||
| Net trade name | $ | $ | 500,000 |
| Merchant Portfolio | $ | $ | 18,000,000 | |||||
| Less accumulated amortization | (2,476,191 | ) | ||||||
| Net trade name | $ | $ | 15,523,809 |
| Exclusive agreement to purchase natural gas | $ | 4,499,952 | $ | 4,499,952 | ||||
| Less accumulated amortization | (1,087,489 | ) | (825,173 | ) | ||||
| Net mineral rights | $ | 3,412,463 | $ | 3,674,779 | ||||
| Total intangible assets, net | $ | 3,500,246 | $ | 20,310,255 |
Due to the ongoing litigation with FFS relating to a breach of contract in connection with the Acquired Merchant Portfolio (see Note 15), the Company has written off the asset and recognized a $12,642,857 loss on impairment for the year ended December 31, 2023.
Amortization expense for the years ended December 31, 2023 and 2022 was $4,172,117 and $3,664,488, respectively.
The Company’s merchant portfolio and tradename are being amortized over respective useful lives of 7 and 5 years and the Company’s agreement to purchase natural gas is being amortized over the useful life of years.
The following sets forth the estimated amortization expense related to amortizing intangible assets for the years ended December 31:
| 2024 | $ | 534,798 | ||
| 2025 | 450,988 | |||
| 2026 | 450,988 | |||
| 2027 | 450,988 | |||
| 2028 | 449,995 | |||
| Thereafter | 1,162,489 | |||
| Total | $ | 3,500,246 |
The weighted average remaining useful life of amortizing intangible assets was years at December 31, 2023.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2023 | Apr 15, 2024 | Showing above |
| 2022 | Mar 30, 2023 | |
| 2021 | Mar 28, 2022 | |
| 2020 | Mar 30, 2021 | |
| 2019 | Apr 29, 2020 | |
| 2018 | Apr 18, 2019 | |
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.