Rein Therapeutics, Inc. Goodwill & Intangibles Disclosure
6. Goodwill and Indefinite-Lived Intangible Assets
In the fourth quarter of 2024, the Company determined that the temporary delay of further clinical development of LTI-01 until additional funds are raised may not be a short-term measure. The assessment of recoverability and impairment was performed at the individual indefinite-lived intangible asset level. The Company concluded that the fair value of the LTI-01 was less than its carrying value and recognized an impairment loss for this asset of approximately $37,000. This impairment charge is classified within impairment loss on intangible assets in the consolidated statements of operations and comprehensive loss. The fair value of intangible assets was determined using multi-period excess earning method and using Level 3 inputs, which included estimates of forecasted cash flows for each candidate.
The Company performed an impairment assessment of its goodwill, both qualitatively and quantitatively, and concluded that the fair value of goodwill exceeds its carrying value and there were no qualitative factors that would have triggered impairment, therefore no goodwill impairment was recognized as of December 31, 2024. The fair value of reporting unit was determined using the income approach with a reconciliation to market capitalization.
Goodwill and indefinite-lived intangible assets consisted of the following:
|
|
December 31, |
|
|
December 31, |
|
||
Goodwill |
|
$ |
6,330 |
|
|
$ |
6,330 |
|
Indefinite-lived intangible assets |
|
|
42,200 |
|
|
|
79,200 |
|
|
|
$ |
48,530 |
|
|
$ |
85,530 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2024 | Apr 7, 2025 | Showing above |
| 2023 | Apr 15, 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.