Sanara MedTech Inc. Goodwill & Intangibles Disclosure
NOTE 6 – GOODWILL AND INTANGIBLES, NET
The changes in the carrying amount of the Company’s goodwill were as follows:
| Total | ||||
| Balance as of December 31, 2023 | $ | 3,601,781 | ||
| Acquisitions | ||||
| Balance as of December 31, 2024 | 3,601,781 | |||
| Acquisitions | ||||
| Balance as of December 31, 2025 | $ | 3,601,781 | ||
In connection with the change in reportable operating segments in the second quarter of 2024, the Company reassessed goodwill as the segments are presented in this report. The Company’s assessment determined that these changes, or any other matters noted, including the decision to discontinue the THP segment in mid-September 2025, did not alter the Company’s conclusion that goodwill was not impaired as of December 31, 2025.
The carrying values of the Company’s intangible assets were as follows for the periods presented:
| December 31, 2025 | December 31, 2024 | |||||||||||||||||||||||
| Cost | Accumulated Amortization | Net | Cost | Accumulated Amortization | Net | |||||||||||||||||||
| Amortizable Intangible Assets: | ||||||||||||||||||||||||
| Patents and Other IP | $ | 16,297,802 | $ | (2,663,001 | ) | $ | 13,634,801 | $ | 17,683,771 | $ | (1,859,840 | ) | $ | 15,823,931 | ||||||||||
| Customer relationships and other | 7,260,008 | (3,676,205 | ) | 3,583,803 | 7,260,008 | (2,641,456 | ) | 4,618,552 | ||||||||||||||||
| Licenses | 2,750,000 | (1,327,931 | ) | 1,422,069 | 4,700,000 | (1,661,388 | ) | 3,038,612 | ||||||||||||||||
| Total | $ | 26,307,810 | $ | (7,667,137 | ) | $ | 18,640,673 | $ | 29,643,779 | $ | (6,162,684 | ) | $ | 23,481,095 | ||||||||||
As of December 31, 2025, the weighted-average amortization period for finite-lived intangible assets was 12.5 years. Amortization expense related to intangible assets was $2,486,302 and $2,594,897 for the years ended December 31, 2025 and 2024, respectively. For the year ended December 31, 2025, and in connection with our review of intangible assets, the Company recorded an asset impairment charge of $1,841,120 to write-down certain IP assets that have not generated cash flows since acquisition and were no longer expected to be used in the Company’s strategic plans. Intangible assets, net of accumulated amortization, related to discontinued operations totaled $17,525,681 for December 31, 2024. Amortization expense related to intangible assets included in discontinued operations was $1,284,092 and $1,296,840 for the years ended December 31, 2025 and 2024, respectively. Intangible asset impairment charges related to THP discontinued operations were $18,327,414 and $506,836 for the years ended December 31, 2025 and 2024, respectively. The asset impairment charge recorded in 2024 was included in depreciation and amortization in the Consolidated Statements of Operations.
The estimated remaining amortization expense as of December 31, 2025 for finite-lived intangible assets is as follows:
| 2026 | $ | 2,342,404 | ||
| 2027 | 2,336,102 | |||
| 2028 | 2,336,102 | |||
| 2029 | 1,825,030 | |||
| 2030 | 1,313,959 | |||
| Thereafter | 8,487,076 | |||
| Total | $ | 18,640,673 |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 24, 2026 | Showing above |
| 2024 | Mar 25, 2025 | |
| 2023 | Mar 25, 2024 | |
| 2022 | Mar 20, 2023 | |
| 2021 | Mar 31, 2022 | |
| 2020 | Mar 30, 2021 | |
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.