5.
Goodwill and Intangible Assets

The following table summarizes changes in goodwill balance (in thousands):

Balance at December 31, 2024

 

$

14,735

 

Impact of foreign currency translation

 

 

715

 

Balance at December 31, 2025

 

$

15,450

 

The Company’s Federal Communications Commission (“FCC”) licenses are recognized as finite-lived intangible assets and are amortized over their estimated useful lives. The licenses are subject to renewal upon expiration and require approval by the FCC. The Company intends to renew these licenses, and the expected future cash flows associated with the licenses assume renewal upon expiration. Management does not believe that renewal uncertainty will materially limit the Company’s ability to generate cash flows from its satellite and ground station operations.

Intangible assets consisted of the following (in thousands):

 

 

December 31, 2025

 

 

Gross Carrying Amount

 

 

Accumulated Amortization

 

Developed technology

 

$

12,867

 

 

$

(4,378

)

Trade names

 

 

2,181

 

 

 

(1,781

)

Patents

 

 

393

 

 

 

(369

)

FCC licenses

 

 

480

 

 

 

(314

)

 

$

15,921

 

 

$

(6,842

)

 

 

 

 

 

 

 

 

 

December 31, 2024

 

 

Gross Carrying Amount

 

 

Accumulated Amortization

 

Developed technology

 

$

12,270

 

 

$

(3,153

)

Trade names

 

 

2,080

 

 

 

(1,282

)

Patents

 

 

393

 

 

 

(345

)

FCC licenses

 

 

480

 

 

 

(282

)

 

$

15,223

 

 

$

(5,062

)

As of December 31, 2025, the weighted-average amortization period for remaining developed technology was 7.9 years, trade names was 0.9 years, and patents and FCC licenses was 4.8 years. Amortization expense related to intangible assets was $1.5 million and $3.2 million for the years ended December 31, 2025 and 2024, respectively. The Company did not recognize any impairment charges during the years ended December 31, 2025 and 2024.

As of December 31, 2025, the expected future amortization expense of intangible assets is as follows (in thousands):

Year ending December 31,

 

Future Amortization Expense

 

2026

 

$

1,519

 

2027

 

 

1,112

 

2028

 

 

1,107

 

2029

 

 

1,104

 

2030

 

 

1,102

 

Thereafter

 

 

3,135

 

 

$

9,079

 

Historical Timeline

Fiscal YearFiled
2025Mar 19, 2026Showing above
2024Mar 31, 2025
2023Mar 6, 2024
2022Mar 15, 2023
2021Mar 30, 2022

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.