SOUNDTHINKING, INC. Goodwill & Intangibles Disclosure
Note 5. Goodwill and Intangible Assets
There was no activity related to goodwill for the years ended December 31, 2025 and 2024. The Company has not recorded any goodwill impairment charges through December 31, 2025.
Intangible assets as of December 31, 2025 and 2024 are as follows (in thousands):
|
December 31, 2025 |
|
|||||||||||
|
Weighted-Average Amortization Period (in years) |
|
Gross |
|
|
Accumulated Amortization |
|
|
Net |
|
|||
Customer relationships |
14 |
|
$ |
25,470 |
|
|
$ |
(8,140 |
) |
|
$ |
17,330 |
|
Acquired software technology |
9 |
|
|
16,340 |
|
|
|
(5,622 |
) |
|
|
10,718 |
|
Patents and intellectual property |
3 |
|
|
2,076 |
|
|
|
(1,600 |
) |
|
|
476 |
|
Tradename |
9 |
|
|
2,100 |
|
|
|
(1,289 |
) |
|
|
811 |
|
Total intangible assets, net |
|
|
$ |
45,986 |
|
|
$ |
(16,651 |
) |
|
$ |
29,335 |
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
|
December 31, 2024 |
|
|||||||||
|
|
|
Gross |
|
|
Accumulated Amortization |
|
|
Net |
|
|||
Customer relationships |
|
|
$ |
25,470 |
|
|
$ |
(6,307 |
) |
|
$ |
19,163 |
|
Acquired software technology |
|
|
|
16,340 |
|
|
|
(3,911 |
) |
|
|
12,429 |
|
Patents |
|
|
|
2,068 |
|
|
|
(1,411 |
) |
|
|
657 |
|
Tradename |
|
|
|
2,100 |
|
|
|
(1,167 |
) |
|
|
933 |
|
Total intangible assets, net |
|
|
$ |
45,978 |
|
|
$ |
(12,796 |
) |
|
$ |
33,182 |
|
Intangible assets amortization expense was $3.9 million for each of the years ended December 31, 2025, 2024 and 2023.
The following table presents future intangible asset amortization as of December 31, 2025 (in thousands):
2026 |
|
|
|
|
|
|
$ |
3,824 |
|
2027 |
|
|
|
|
|
|
|
3,809 |
|
2028 |
|
|
|
|
|
|
|
3,741 |
|
2029 |
|
|
|
|
|
|
|
3,650 |
|
2030 |
|
|
|
|
|
|
|
2,775 |
|
Thereafter |
|
|
|
|
|
|
|
11,536 |
|
Total |
|
|
|
|
|
|
$ |
29,335 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 30, 2026 | Showing above |
| 2023 | Apr 1, 2024 | |
| 2022 | Mar 14, 2023 | |
| 2021 | Mar 29, 2022 | |
| 2020 | Mar 29, 2021 | |
| 2019 | Mar 13, 2020 | |
| 2018 | Mar 4, 2019 | |
| 2017 | Mar 28, 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.