SECURITY NATIONAL FINANCIAL CORP Goodwill & Intangibles Disclosure
| 10) | Goodwill and Other Intangible Assets |
Information regarding goodwill by segment was as follows:
Life Insurance | Cemetery/ Mortuary | Total | ||||||||||
| Balance at December 31, 2023: | ||||||||||||
| Goodwill | $ | 2,765,570 | $ | 2,488,213 | $ | 5,253,783 | ||||||
| Accumulated impairment | ||||||||||||
| Total goodwill, net | 2,765,570 | 2,488,213 | 5,253,783 | |||||||||
| Acquisition | ||||||||||||
| Balance at December 31, 2024: | ||||||||||||
| Goodwill | 2,765,570 | 2,488,213 | 5,253,783 | |||||||||
| Accumulated impairment | ||||||||||||
| Total goodwill, net | 2,765,570 | 2,488,213 | 5,253,783 | |||||||||
| Acquisition | ||||||||||||
| Balance at December 31, 2025: | ||||||||||||
| Goodwill | 2,765,570 | 2,488,213 | 5,253,783 | |||||||||
| Accumulated impairment | ||||||||||||
| Total goodwill, net | $ | 2,765,570 | $ | 2,488,213 | $ | 5,253,783 | ||||||
Goodwill is not amortized but is tested annually for impairment. The annual impairment tests resulted in no impairment of goodwill for 2025 and 2024.
SECURITY NATIONAL FINANCIAL CORPORATION
AND SUBSIDIARIES
Notes to Consolidated Financial Statements
Years Ended December 31, 2025 and 2024
| 10) | Goodwill and Other Intangible Assets (Continued) |
The carrying value of the Company’s other intangible assets were as follows, which are included in other assets on the consolidated balance sheets:
| December 31, | ||||||||||
| Useful Life | 2025 | 2024 | ||||||||
| Intangible asset - trade name (1) | 15 years | $ | 2,100,000 | $ | 2,100,000 | |||||
| Intangible assets - other (1) | 15 years | 210,000 | 210,000 | |||||||
| Intangible asset - trade name (2) | 15 years | 610,000 | 610,000 | |||||||
| Intangible asset - customer lists (2) | 15 years | 2,290,000 | 2,290,000 | |||||||
| Less accumulated amortization | (1,478,666 | ) | (1,131,333 | ) | ||||||
| Balance at end of year | $ | 3,731,334 | $ | 4,078,667 | ||||||
| (1) | Cemetery/Mortuary Segment |
| (2) | Life Insurance Segment |
Amortization expense for 2025 and 2024 was $347,333 and $324,000, respectively, and is amortized over the estimated useful life using the straight-line method. Amortization expense is included in other expenses on the consolidated statements of earnings.
The following table summarizes the Company’s estimate of future amortization for the other intangible assets:
| 2026 | $ | 347,333 | ||
| 2027 | 347,333 | |||
| 2028 | 347,333 | |||
| 2029 | 347,333 | |||
| 2030 | 347,333 | |||
| Thereafter | 1,994,669 | |||
| Total | $ | 3,731,334 |
SECURITY NATIONAL FINANCIAL CORPORATION
AND SUBSIDIARIES
Notes to Consolidated Financial Statements
Years Ended December 31, 2025 and 2024
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 16, 2026 | Showing above |
| 2024 | Mar 31, 2025 | |
| 2023 | Mar 29, 2024 | |
| 2022 | Mar 31, 2023 | |
| 2021 | Mar 31, 2022 | |
| 2020 | Mar 31, 2021 | |
| 2019 | Mar 30, 2020 | |
| 2018 | Mar 29, 2019 | |
| 2017 | Apr 2, 2018 | |
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.