NOTE 19 – GOODWILL AND INTANGIBLE ASSETS

 

During our previous fiscal year ended March 31, 2022, we recorded $90,870,094 of Goodwill generated from our Merger with Gemini. The balance of Goodwill at March 31, 2024 and 2023 was $90,870,094. We did not have any Goodwill prior to the year ended March 31, 2022.

 

Total amortization expense of our intangible assets was $13,062,874, $13,067,041, and $13,072,967 for the years ended March 31, 2024, 2023, and 2022, respectively.

 

Intangible assets consisted of the following:

 

      March 31, 2024 
   Life  Licenses   Patent   Other Intangible Assets 
Licensing Agreement – Jesse James  5  $125,000   $-   $- 
Licensing Agreement – Jeff Rann  5   125,000    -    - 
Streak Visual Ammunition patent  11.2   -    950,000    - 
SWK patent acquisition  15   -    6,124,005    - 
Jagemann Munition Components:                  
Customer Relationships  3   -    -    1,450,613 
Intellectual Property  3   -    -    1,543,548 
Tradename  5   -    -    2,152,076 
GDI Acquisition:                  
Tradename  15   -    -    76,532,389 
Customer List  10   -    -    65,252,802 
Intellectual Property  10   -    -    4,224,442 
Other Intangible Assets  5   -    -    607,747 
       250,000    7,074,005    151,763,617 
                   
Accumulated amortization – Licensing Agreements      (250,000)   -    - 
Accumulated amortization – Patents      -    (2,534,715)   - 
Accumulated amortization – Intangible Assets      -    -    (40,714,550)
      $-   $4,539,290   $111,049,067 

 

 

      March 31, 2023 
   Life  Licenses   Patent   Other Intangible Assets 
Licensing Agreement – Jesse James  5  $125,000   $-   $- 
Licensing Agreement – Jeff Rann  5   125,000    -    - 
Streak Visual Ammunition patent  11.2   -    950,000    - 
SWK patent acquisition  15   -    6,124,005    - 
Jagemann Munition Components:                  
Customer Relationships  3   -    -    1,450,613 
Intellectual Property  3   -    -    1,543,548 
Tradename  5   -    -    2,152,076 
GDI Acquisition:                  
Tradename  15   -    -    76,532,389 
Customer List  10   -    -    65,252,802 
Intellectual Property  10   -    -    4,224,442 
Other Intangible Assets  5   -    -    607,747 
       250,000    7,074,005    151,763,617 
                   
Accumulated amortization – Licensing Agreements      (250,000)   -    - 
Accumulated amortization – Patents      -    (2,041,251)   - 
Accumulated amortization – Intangible Assets      -    -    (28,036,807)
      $-   $5,032,754   $123,726,810 

 

Annual estimated amortization of intangible assets for the next five fiscal years are as follows:

 

Years Ended March 31,  Estimates for
Fiscal Year
 
2025  $12,650,642 
2026   12,614,775 
2027   12,549,188 
2028   12,543,226 
2029   12,507,792 
Thereafter   52,722,734 
Annual amortization of intangible assets  $115,588,357 

 

 

AMMO, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

Historical Timeline

Fiscal YearFiled
2024Jun 13, 2024Showing above
2023Jun 14, 2023
2022Jun 29, 2022
2021Jun 29, 2021
2020Aug 19, 2020
2019Jul 1, 2019
2017Apr 11, 2018

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.