SOCKET MOBILE, INC. Goodwill & Intangibles Disclosure
Intangible Assets
The Company’s intangible assets consist of completed technologies and acquired license rights. Intangible assets are amortized over their estimated useful lives based upon the estimated economic value derived from the related intangible assets. Amortization is computed using the straight-line method over the estimated useful lives of the assets. For the years ended December 31, 2024 and 2023, the amortization expenses of intangible assets were $127,296.
SOCKET MOBILE, INC.
NOTES TO FINANCIAL STATEMENTS
The anticipated future amortization of these intangible assets as of December 31, 2024, is as follows:
| Fiscal Year | Amount | |||
| 2025 | 127,296 | |||
| 2026 | 127,296 | |||
| 2027 | 127,296 | |||
| 2028 | 127,296 | |||
| 2029 | 127,296 | |||
| Thereafter | 795,593 | |||
| $ | 1,432,073 | |||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2024 | Mar 25, 2025 | Showing above |
| 2023 | Mar 25, 2024 | |
| 2022 | Mar 31, 2023 | |
| 2021 | Mar 31, 2022 | |
| 2015 | Mar 24, 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.