Talkspace, Inc. Goodwill & Intangibles Disclosure
NOTE 4. GOODWILL
For the year ended December 31, 2022, the Company decided to by-pass the qualitative assessment and proceed directly to step one of the impairment test. The Company operates as one reporting unit and the fair value of the reporting unit is estimated using quoted market prices of the Company’s stock in active markets. The annual impairment test indicated that the carrying amount of the reporting unit exceeded its fair value, which was primarily due to the continuous decline in our market capitalization as a result of a deterioration of the current economic environment.
For the year ended December 31, 2022, the Company recorded a goodwill impairment charge of $6.1 million. For the years ended December 31, 2021 and 2020, the Company did not record any impairment charge of goodwill.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2022 | Mar 10, 2023 | Showing above |
| 2021 | Feb 25, 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.