SURF AIR MOBILITY INC. Goodwill & Intangibles Disclosure
Note 5. Intangible Assets, Net
Intangibles assets, net, consists of the following (in thousands):
|
|
December 31, |
|
|
December 31, |
|
||
EAS contracts |
|
$ |
25,770 |
|
|
$ |
25,770 |
|
Tradenames and trademarks |
|
|
8,340 |
|
|
|
8,340 |
|
Software |
|
|
3,122 |
|
|
|
3,122 |
|
Other intangibles |
|
|
225 |
|
|
|
225 |
|
Intangible assets, gross |
|
|
37,457 |
|
|
|
37,457 |
|
Accumulated amortization |
|
|
(17,390 |
) |
|
|
(14,339 |
) |
Intangible assets, net |
|
$ |
20,067 |
|
|
$ |
23,118 |
|
The Company recorded amortization expense of $3.1 million and $3.5 million for the year ended December 31, 2025 and 2024, respectively. Amortization expense is recognized as a component of Depreciation and Amortization expense in the accompanying Consolidated Statement of Operations.
Expected future amortization as of December 31, 2025 is as follows (in thousands):
|
|
Amount |
|
|
2026 |
|
$ |
2,915 |
|
2027 |
|
|
2,764 |
|
2028 |
|
|
2,577 |
|
2029 |
|
|
2,577 |
|
2030 |
|
|
2,577 |
|
Thereafter |
|
|
6,657 |
|
Total |
|
$ |
20,067 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 12, 2026 | Showing above |
| 2024 | Mar 21, 2025 | |
| 2023 | Mar 29, 2024 | |
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.