INTANGIBLE ASSETS
Intangible assets consist of proprietary developed software, intellectual property, and customer lists. Proprietary developed software is carried at cost less accumulated amortization; intellectual property, customer lists and acquired contracts are carried at acquisition date fair value less accumulated amortization.
On November 13, 2023, SWK Technologies, Inc. acquired the customer list and prepaid time from clients of JCS Computer Resource Corporation (“JCS”) pursuant to an Asset Purchase Agreement for cash of $278,500, and a promissory note in the amount of $1.0 million (the JCS Note”) for a total of $1.3 million. The JCS Note balance was paid in full on July 24, 2024. The customer list was recognized as an intangible asset and will be amortized over its estimated useful life of seven years.
The following table provides information about the Company’s identified intangible assets:
As of
Estimated Useful Lives
(in thousands)
December 31, 2024December 31, 2023
Proprietary developed software$390 $390 
5 – 7
Intellectual property, customer list, and acquired contracts9,049 9,069 
5 – 15
$9,439 $9,459 
Less: accumulated amortization(5,415)(4,540)
Total intangible assets$4,024 $4,919 
Amortization expense related to the above intangible assets was $875,300 and $672,000, respectively, the years ended December 31, 2024 and 2023. There was no impairment of intangible assets for the years ended December 31, 2024 and 2023, respectively.
The Company expects future amortization expense to be the following:
(in thousands)
Amortization
2025$883 
2026875 
2027749 
2028639 
2029363 
thereafter515 
Total intangible asset amortization$4,024 

Historical Timeline

Fiscal YearFiled
2024Mar 4, 2025Showing above
2023Mar 14, 2024
2022Feb 28, 2023
2021Mar 29, 2022
2020Mar 25, 2021
2019Mar 26, 2020
2018Mar 28, 2019
2017Mar 26, 2018
2016Mar 24, 2017
2015Mar 30, 2016

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.