GOODWILL AND INTANGIBLE ASSETS

Goodwill

The Company recorded goodwill of $847 on October 31, 2023 in connection with the Singapore Acquisition. See Note 5 for further information on the Singapore Acquisition.

For the years ended December 31, 2024 and 2023, the changes in carrying amount of goodwill were as follows:


	Carrying Value
	2024		2023
Goodwill, January 1	$	5,749	$	4,875
Acquisition	—		847
Currency translation	(46)		27
Goodwill, December 31	$	5,703	$	5,749

On October 1, 2024, the Company applied ASC 350, and performed quantitative assessments to determine whether it was more likely than not that the fair value of its reporting units was less than their carrying values. To estimate the fair value of these reporting units, the Company used both an income approach and a market approach. The income approach required management to make significant estimates and judgments regarding future cash flows that were based on a number of factors including actual operating results, forecasted revenue and expenses, discount rate assumptions, and long-term growth rate assumptions. The market approach required the use of multiples based on financial metrics for both acquisitions and peer group companies. The Company did not recognize any impairment of goodwill related to these acquisitions. At the conclusion of its assessment, the Company determined the fair value of the reporting units exceeded their carrying values. As such, the Company determined that no impairment of goodwill had taken place as of December 31, 2024.

Intangible Assets

For the years ended December 31, 2024 and 2023, the Company’s Intangible assets consisted of the following components:


2024	Weighted Average Remaining Amortization Useful Lives (in years)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Non-compete agreements	2.9	$	145	$	(116)	$	29
Trade name	6.1	1,634		(731)		903
Customer lists	2.6	3,952		(2,399)		1,553
Developed technology	1.0	657		(651)		6
		$	6,388	$	(3,897)	$	2,491


2023	Weighted Average Remaining Amortization Useful Lives (in years)	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Non-compete agreements	3.4	$	147	$	(98)	$	49
Trade name	6.7	1,638		(515)		1,123
Customer lists	3.5	3,957		(1,690)		2,267
Developed technology	0.9	657		(468)		189
		$	6,399	$	(2,771)	$	3,628

Amortization expense for the years ended December 31, 2024 and 2023 was $1,126 and $1,124, respectively. Intangible assets are amortized on a straight-line basis over their estimated useful lives. No impairment in the value of amortizable intangible assets was recognized during the years ended December 31, 2024 or 2023.

Estimated future amortization expense for intangible assets for the remainder of the fiscal year ending December 31, 2024, and for each of the next fiscal years are as follows:


2025	$	868
2026	633
2027	548
2028	129
2029	110
Thereafter	203
	$	2,491

The change in the book value of amortizable intangible assets is as follows:


	January 1, 2024 Beginning Balance		Acquisition		Amortization		Translation and Other		December 31, 2024 Ending Balance
Non-compete agreements	$	49	$	—	$	(18)	$	(2)	$	29
Trade name	1,123		—		(216)		(4)		903
Customer lists	2,267		—		(709)		(5)		1,553
Developed technology	189		—		(183)		—		6
	$	3,628	$	—	$	(1,126)	$	(11)	$	2,491


	January 1, 2023 Beginning Balance		Acquisition		Amortization		Translation and Other		December 31, 2023 Ending Balance
Non-compete agreements	$	33	$	28	$	(14)	$	2	$	49
Trade name	1,236		87		(202)		2		1,123
Customer lists	2,856		97		(689)		3		2,267
Developed technology	391		—		(219)		17		189
	$	4,516	$	212	$	(1,124)	$	24	$	3,628

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.

Star Equity Holdings, Inc. Goodwill & Intangibles Disclosure

About Goodwill & Intangibles Disclosures

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