Streamex Corp. Goodwill & Intangibles Disclosure
NOTE 5 – GOODWILL AND INTANGIBLE ASSETS
Goodwill
The following table shows the changes in the carrying amount of goodwill for the period:
| Goodwill as of December 31, 2024 | ||||
| Acquisition1 | 70,435 | |||
| Impairment | ||||
| Foreign currency translation adjustment | 549 | |||
| Goodwill as of December 31, 2025 | $ | 70,984 | ||
| 1) | Related to the acquisition of the Streamex Exchange. See Note 11 for more details. Goodwill was initially measured in the functional currency of Streamex Exchange and translated into U.S. dollars using the exchange rate in effect on the acquisition date. Subsequent changes in foreign exchange rates are reflected in the cumulative translation adjustment within other comprehensive loss. |
During the year ended December 31, 2025, the Company evaluated the existence of any indicators of impairment in accordance with ASC 350, Intangibles—Goodwill and Other. Based on the qualitative assessment performed, management concluded that the combination of factors considered did not result in a triggering event requiring a quantitative impairment test. Based on the assessment, there was goodwill impairment recognized in the year ended December 31, 2025.
Intangible Assets
Intangible assets consist of trade name, developed technology, legal and compliance framework, and patents, and are initially recorded at fair value. Long-lived intangible assets are amortized over their estimated useful lives in a method reflecting the pattern in which the economic benefits are consumed or amortized on a straight-line basis if such pattern cannot be reliably determined. In evaluating whether a triggering event occurred during the period, the Company performed a qualitative assessment consistent with the guidance in U.S. GAAP. This assessment considered the totality of events and circumstances and concluded that it is not more likely than not (i.e., less than a 50% likelihood) that the fair value of the reporting unit is below its carrying amount. Based on this assessment, no impairment charges were recorded for the periods presented.
The following summarizes the Company’s intangible assets as of December 31, 2025 and 2024:
| December 31, | December 31, | |||||||
| 2025 | 2024 | |||||||
| Trade name1 | $ | 5,100 | $ | |||||
| Developed technology1 | 40,000 | |||||||
| Legal and compliance framework1 | 2,400 | |||||||
| Patents | 380 | 380 | ||||||
| Total | 47,880 | 380 | ||||||
| Foreign currency translation adjustment | 371 | |||||||
| Accumulated amortization: | ||||||||
| Trade name | (303 | ) | ||||||
| Developed technology | (2,975 | ) | ||||||
| Legal and compliance framework | (204 | ) | ||||||
| Patents | (130 | ) | (111 | ) | ||||
| Total accumulated amortization | (3,612 | ) | (111 | ) | ||||
| Intangible assets, net | $ | 44,639 | $ | 269 | ||||
| 1) | Intangible assets acquired in connection with the Streamex Exchange acquisition were initially measured in Canadian dollars and translated into U.S. dollars using the exchange rate in effect on the acquisition date. Subsequent changes in exchange rates are reflected in the carrying amounts presented above and recorded in other comprehensive loss as part of the cumulative translation adjustment. |
Amortization expenses for total intangible assets were approximately $3.5 million and $16 for the years ended December 31, 2025 and 2024, respectively. Amortization expenses for trade name, developed technology, legal and compliance framework and patents was $303, $2,975, $204 and $19, respectively, for the year ended December 31, 2025. Amortization expenses for trade name, developed technology, legal and compliance framework and patents was $0, $0, $0 and $19, respectively, for the year ended December 31, 2024. The weighted-average useful lives of total intangibles, trade name, developed technology, legal and compliance framework and patents were 7.6 years, 9.4 years, 7.4 years, 6.4 years and 13.8 years, respectively, as of December 31, 2025.
Expected future amortization expense of intangible assets as of December 31, 2025, is as follows:
| 2026 | $ | 5,918 | ||
| 2027 | 5,918 | |||
| 2028 | 5,918 | |||
| 2029 | 5,918 | |||
| 2030 | 5,918 | |||
| Thereafter | 15,049 | |||
| Total | $ | 44,639 | ||
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.