Stran & Company, Inc. Goodwill & Intangibles Disclosure
| F. | INTANGIBLE ASSET - Customer List: |
Wildman Acquisition
The Company has acquired select assets and the customer list of an entity as discussed in Note I and Note M. The Company, using a Contingent Earn-Out Calculation, made the determination that the amounts allocated to Intangible Asset - Customer List amounted to $2,253,690. The intangible asset - customer list is amortized over 10 years. At December 31, 2022 and 2021, the Company’s evaluation of Intangible Asset - Customer List has resulted in accumulated impairment of $299,912 and $69,583, respectively.
Amortization expense related to intangible asset - customer list was $211,584 and $254,812 for the years ended December 31, 2022 and 2021.
Estimated future amortization expense for the years:
| 2023 | $ | 195,378 | ||
| 2024 | 195,378 | |||
| 2025 | 195,378 | |||
| 2026 | 195,378 | |||
| 2027 | 195,378 | |||
| $ | 976,889 |
G.A.P. Acquisition
The Company has acquired select assets and the customer list of an entity as discussed in Note I and Note M. The Company, using a Contingent Earn-Out Calculation, made the determination that the amounts allocated to Intangible Asset - Customer List amounted to $2,275,290. The intangible asset - customer list is amortized over 10 years. At December 31, 2022 and 2021, the Company’s evaluation of Intangible Asset - Customer List has resulted in accumulated impairment of zero.
Amortization expense related to intangible asset - customer lists was $208,571 and zero for the years ended December 31, 2022 and 2021, respectively.
Estimated future amortization expense for the years:
| 2023 | $ | 227,529 | ||
| 2024 | 227,529 | |||
| 2025 | 227,529 | |||
| 2026 | 227,529 | |||
| 2027 | 227,529 | |||
| $ | 1,137,645 |
Trend Acquisition
The Company has acquired select assets and the customer list of an entity as discussed in Note I and Note M. The Company, using a Contingent Earn-Out Calculation, made the determination that the amounts allocated to Intangible Asset - Customer List amounted to $1,659,831. The intangible asset - customer list is amortized over 10 years. At December 31, 2022 and 2021, the Company’s evaluation of Intangible Asset - Customer List has resulted in accumulated impairment of zero.
Amortization expense related to intangible asset - customer lists was $55,328 and zero for the years ended December 31, 2022 and 2021, respectively.
Estimated future amortization expense for the years:
| 2023 | $ | 165,983 | ||
| 2024 | 165,983 | |||
| 2025 | 165,983 | |||
| 2026 | 165,983 | |||
| 2027 | 165,983 | |||
| $ | 829,916 |
Premier Acquisition
The Company has acquired select assets and the customer list of an entity as discussed in Note I and Note M. The Company, using a Contingent Earn-Out Calculation, made the determination that the amounts allocated to Intangible Asset - Customer List amounted to $1,032,600. The intangible asset - customer list is amortized over 10 years. At December 31, 2022 and 2021, the Company’s evaluation of Intangible Asset - Customer List has resulted in accumulated impairment of zero.
Amortization expense related to intangible asset - customer lists was zero for the years ended December 31, 2022 and 2021.
Estimated future amortization expense for the years:
| 2023 | $ | 113,260 | ||
| 2024 | 113,260 | |||
| 2025 | 113,260 | |||
| 2026 | 113,260 | |||
| 2027 | 113,260 | |||
| $ | 566,300 |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2022 | Mar 30, 2023 | Showing above |
| 2021 | Mar 28, 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.