POWER INTEGRATIONS INC Goodwill & Intangibles Disclosure
6. GOODWILL AND INTANGIBLE ASSETS:
Goodwill increased during the year ended December 31, 2024, due to the Company’s acquisition of Odyssey Semiconductor Technologies (“Odyssey”) (refer to Note 15, Acquisition, for details on the Company’s Odyssey acquisition). Changes in the carrying amount of goodwill as of the December 31, 2025 and 2024 are as follows:
(in thousands) | Goodwill | ||
Balance at January 1, 2024 | $ | 91,849 | |
Goodwill acquired during the period | 3,422 | ||
Balance at December 31, 2024 | 95,271 | ||
Goodwill acquired during the period | - | ||
Ending balance at December 31, 2025 | $ | 95,271 | |
The $3.4 million of goodwill acquired in 2024, resulted from the purchase of Odyssey (see Note 15, Acquisition, for further details).
Intangible assets consist primarily of developed technology, in-process research and development, acquired licenses and domain name, and are reported net of accumulated amortization. In July 2024, the Company acquired the assets of Odyssey, a U.S. company and developer of vertical gallium-nitride (“GaN”) transistor technology, resulting in the addition of in-process research and development of $4.9 million.
The Company amortizes the cost of all intangible assets over the estimated useful life of the developed technology and technology licenses, which range from to twelve years, with the exception of $4.9 million of in-process research and development which will commence amortization once development is completed and products are available for sale as well as $1.3 million paid to acquire an internet domain name. The Company does not expect the amortization of its in-process research and development to begin in 2026. The Company acquired the rights to the internet domain name www.power.com, the Company’s primary domain name; the cost to acquire the domain name has been recorded as an intangible asset and will not be amortized as it has an indefinite useful life.
Amortization of acquired intangible assets was approximately $0.8 million, $1.3 million and $2.2 million in the years ended December 31, 2025, 2024 and 2023, respectively. The Company does not believe there is any significant residual value associated with the following intangible assets:
December 31, 2025 | December 31, 2024 | |||||||||||||||||
| | Accumulated | | | | Accumulated | | |||||||||||
(In thousands) | Gross | Amortization | Net | Gross | Amortization | Net | ||||||||||||
Domain name | $ | 1,261 | $ | — | $ | 1,261 | $ | 1,261 | $ | — | $ | 1,261 | ||||||
In-process research and development | 4,930 | — | 4,930 | 4,930 | — | 4,930 | ||||||||||||
Developed technology |
| 37,960 |
| (37,081) |
| 879 |
| 37,960 |
| (36,492) |
| 1,468 | ||||||
Technology licenses |
| 1,926 |
| (1,752) |
| 174 |
| 1,926 |
| (1,510) |
| 416 | ||||||
Total intangible assets | $ | 46,077 | $ | (38,833) | $ | 7,244 | $ | 46,077 | $ | (38,002) | $ | 8,075 | ||||||
The estimated future amortization expense related to definite-lived intangible assets at December 31, 2025, is as follows:
| Estimated | ||
Amortization | |||
Fiscal Year | (In thousands) | ||
2026 | $ | 687 | |
2027 |
| 365 | |
Total* | $ | 1,052 | |
| * | Total excludes $4.9 million of in-process research and development which will be amortized upon completion of development over the estimated useful life of the technology. |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 6, 2026 | Showing above |
| 2024 | Feb 7, 2025 | |
| 2023 | Feb 12, 2024 | |
| 2022 | Feb 7, 2023 | |
| 2021 | Feb 7, 2022 | |
| 2020 | Feb 5, 2021 | |
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.