Scilex Holding Co Goodwill & Intangibles Disclosure
7. Goodwill and Intangible Assets
As of December 31, 2025 and 2024, the Company had recorded goodwill of $13.5 million. During Q4 2025, the Company recorded a goodwill impairment loss of $73.4 million, attributable to business combination with Vivasor in December 2025. At December 31, 2025, based on the results of both qualitative and quantitative impairment tests performed, the Company concluded that the carrying amount of the goodwill associated with the Vivasor Business Combination exceeded its fair value, thereby resulting in a full write-off of the associated goodwill balance. No goodwill impairment was recognized for the year ended December 31, 2024.
Amortization of the intangible assets that have finite useful lives is generally recorded on a straight-line basis over their useful lives, ranging from 5.8 to 12.4 years. A summary of the Company’s identifiable intangible assets as of December 31, 2025 and 2024 is as follows (in thousands):
|
December 31, 2025 |
|
|||||||||
|
Gross Carrying Amount |
|
|
Accumulated Amortization |
|
|
Intangibles, net |
|
|||
Patent rights |
$ |
32,630 |
|
|
|
19,946 |
|
|
$ |
12,684 |
|
Acquired technology |
|
22,940 |
|
|
|
10,650 |
|
|
|
12,289 |
|
Acquired licenses |
|
35,711 |
|
|
|
1,596 |
|
|
|
34,115 |
|
Assembled workforce |
|
500 |
|
|
|
500 |
|
|
|
— |
|
Total intangible assets |
$ |
91,781 |
|
|
$ |
32,692 |
|
|
$ |
59,088 |
|
|
December 31, 2024 |
|
|||||||||
|
Gross Carrying Amount |
|
|
Accumulated Amortization |
|
|
Intangibles, net |
|
|||
Patent rights |
$ |
32,630 |
|
|
$ |
17,770 |
|
|
$ |
14,860 |
|
Acquired technology |
|
21,940 |
|
|
|
9,143 |
|
|
|
12,797 |
|
Acquired licenses |
|
5,711 |
|
|
|
915 |
|
|
|
4,796 |
|
Assembled workforce |
|
500 |
|
|
|
500 |
|
|
|
- |
|
Total intangible assets |
$ |
60,781 |
|
|
$ |
28,328 |
|
|
$ |
32,453 |
|
As of December 31, 2025, the weighted average remaining life for identifiable intangible assets was 7.5 years. Aggregate amortization expense was $4.3 million and $4.0 million for the years ended December 31, 2025 and 2024, respectively. Patent rights, acquired technology and acquired licenses are amortized over a 15-year period, other than Datavault acquired licenses, which are amortized over a 7-year period. Assembled workforce is amortized over a five-year period.
Estimated future amortization expense related to intangible assets as of December 31, 2025 is as follows (in thousands):
|
Amount |
|
|
2026 |
$ |
8,368 |
|
2027 |
$ |
8,368 |
|
2028 |
$ |
8,368 |
|
2029 |
$ |
8,368 |
|
2030 |
$ |
8,368 |
|
Thereafter |
$ |
17,248 |
|
Total |
$ |
59,088 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Apr 10, 2026 | Showing above |
| 2024 | Mar 31, 2025 | |
| 2023 | Mar 12, 2024 | |
| 2022 | Mar 7, 2023 | |
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.