Note 4 Goodwill and Intangible Assets

 

Goodwill

 

The Company currently has one reporting unit. The following table presents the changes in the carrying amount of goodwill for the year ended March 31, 2026 (in thousands):

 

  

Goodwill

 

Balance as of March 31, 2025

 $12,041 

Acquisitions

  - 

Balance as of March 31, 2026

 $12,041 

 

Finite-Lived Intangible Assets

 

The Company’s finite-lived intangible assets were as follows as of March 31, 2026 (in thousands):

 

  

Gross

      

Net

 
  

Carrying

  

Accumulated

  

Carrying

 
  

Value

  

Amortization

  

Value

 

Content creator relationships

 $3,229  $3,045  $184 

Brand and trade names

  1,010   581   429 

Total

 $4,239  $3,626  $613 

 

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 amortization expense on its finite-lived intangible assets was $0.6 million and $1.1 million for the years ended March 31, 2026 and 2025, respectively.

 

The Company recorded an impairment charge of none and $0.2 million for the year ended March 31, 2026 and 2025, 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, 2026 and future fiscal years as follows (in thousands):

 

For Years Ending March 31,

    

2027

 $346 

2028

  101 

2029

  101 

2030

  65 

Total

 $613 

 

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Historical Timeline

Fiscal YearFiled
2026Jun 29, 2026Showing above
2025Jul 2, 2025
2024Jul 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.