PodcastOne, Inc. Goodwill & Intangibles Disclosure
Note 4 — Goodwill and Intangible Assets
Goodwill
The Company currently has reporting unit. The following table presents the changes in the carrying amount of goodwill for the year ended March 31, 2025 (in thousands):
| Goodwill | ||||
| Balance as of March 31, 2024 | $ | 12,041 | ||
| Acquisitions | - | |||
| Balance as of March 31, 2025 | $ | 12,041 | ||
Finite-Lived Intangible Assets
The Company’s finite-lived intangible assets were as follows as of March 31, 2025 (in thousands):
| Gross | Net | |||||||||||
| Carrying | Accumulated | Carrying | ||||||||||
| Value | Amortization | Value | ||||||||||
| Content creator relationships | $ | 3,229 | $ | 2,573 | $ | 656 | ||||||
| Brand and trade names | 1,010 | 480 | 530 | |||||||||
| Total | $ | 4,239 | $ | 3,053 | $ | 1,186 | ||||||
The Company’s finite-lived intangible assets were as follows as of March 31, 2024 (in thousands):
| Gross | Net | |||||||||||
| Carrying | Accumulated | Carrying | ||||||||||
| Value | Amortization | Value | ||||||||||
| Content creator relationships | $ | 4,082 | $ | 1,568 | $ | 2,514 | ||||||
| Brand and trade names | 1,010 | 379 | 631 | |||||||||
| Total | $ | 5,092 | $ | 1,947 | $ | 3,145 | ||||||
The Company’s amortization expense on its finite-lived intangible assets was $1.1 million and $0.9 million for the years ended March 31, 2025 and 2024, respectively.
Finder's Fee Agreement
In September 2023, the Company entered into a finder's fee arrangement pursuant to which the Company agreed to issue shares of its common stock at a price of $8.00 per share (subject to adjustment in certain limited circumstances) as a finder’s fee to a certain third party podcast platform in the event certain former and/or current podcasts of such platform entered into new podcasting agreements with the Company, with the amount of the fee to be based on the amount of revenues actually derived by the Company from such podcasts during a predetermined period. Payments made to such third party attributed to the Company entering into new podcast contracts were capitalized to content creator relationship intangibles. During the year ended March 31, 2025, the Company made an adjustment of $0.5 million to accrued common stock and increase the content creator relationships balance to account for the settlement of the finder's fee agreement attributed to multiple third-party platforms.
The Company recorded an impairment charge of $0.2 million and for the year ended March 31, 2025 and 2024, respectively. The impairment for the year ended March 31, 2025 was the result of the winding down of a podcast show acquired by PodcastOne.
The Company expects to record amortization of intangible assets for fiscal years ending March 31, 2025 and future fiscal years as follows (in thousands):
| For Years Ending March 31, | ||||
| 2026 | $ | 581 | ||
| 2027 | 338 | |||
| 2028 | 101 | |||
| 2029 | 101 | |||
| 2030 | 65 | |||
| Thereafter | - | |||
| $ | 1,186 |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Jul 2, 2025 | Showing above |
| 2024 | Jul 1, 2024 | |
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.