BLOOMIA HOLDINGS, INC. Goodwill & Intangibles Disclosure
8. Goodwill and Other Intangible Assets.
The following table summarizes the changes in goodwill:
Balance as of January 1, 2024 |
| $ | — |
Goodwill resulting from the Bloomia Acquisition |
| 10,122,000 | |
Measurement period adjustment |
| 766,000 | |
Other - Foreign currency translation | (183,000) | ||
Balance as of December 31, 2024 | $ | 10,705,000 |
During the year ended December 31, 2024, the Company recorded a measurement period adjustment which increased goodwill by $766,000. This measurement period adjustment resulted from a remeasurement of acquired payroll taxes payable, other accruals, inventory and property and equipment.
Other intangible assets and related amortization are as follows at December 31, 2024:
| Carrying |
| Useful Life |
| Accumulated |
| Net Carrying | ||||
Amount | (Years) | Amortization | Amount | ||||||||
Tradename | $ | 8,570,000 |
| Indefinite | $ | — | $ | 8,570,000 | |||
Customer relationships |
| 18,300,000 |
| 12 |
| 1,302,000 |
| 16,998,000 | |||
$ | 26,870,000 | $ | 1,302,000 | $ | 25,568,000 | ||||||
For the year ended December 31, 2024, amortization of intangible assets expensed to operations was $1,302,000. The weighted average remaining amortization period for intangible assets as of December 31, 2024 is approximately 11.1 years.
Remaining estimated aggregate annual amortization expense is as follows for the years ended December 31:
| |||
2025 | $ | 1,525,000 | |
2026 |
| 1,525,000 | |
2027 |
| 1,525,000 | |
2028 |
| 1,525,000 | |
2029 |
| 1,525,000 | |
Thereafter |
| 9,373,000 | |
Total | $ | 16,998,000 | |
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.