TIGO ENERGY, INC. Goodwill & Intangibles Disclosure
As of December 31, 2024, the Company had a goodwill balance of $12.2 million. The goodwill balance is related to the acquisition of fSight. Please see Note 4, “Acquisition of Foresight Energy, Ltd.” for additional information. As of December 31, 2024, there has been no impairment of goodwill to date.
The Company’s intangible assets by major asset class are as follows:
|
|
December 31, 2024 |
|
|||||||||||||
(in thousands, except for useful life amounts) |
|
Weighted Average Useful Life (Years) |
|
Gross |
|
|
|
Accumulated Amortization |
|
|
|
Net Book Value |
|
|||
Amortizing: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Patents |
|
6.7 |
|
$ |
450 |
|
|
|
$ |
(137 |
) |
|
|
$ |
313 |
|
Customer relationships |
|
10.0 |
|
|
170 |
|
|
|
|
(33 |
) |
|
|
|
137 |
|
Developed technology |
|
10.0 |
|
|
1,820 |
|
|
|
|
(348 |
) |
|
|
|
1,472 |
|
Total intangible assets |
|
|
|
$ |
2,440 |
|
|
|
$ |
(518 |
) |
|
|
$ |
1,922 |
|
|
|
December 31, 2023 |
|
|||||||||||||
(in thousands, except for useful life amounts) |
|
Weighted Average Useful Life (Years) |
|
Gross |
|
|
|
Accumulated Amortization |
|
|
|
Net Book Value |
|
|||
Amortizing: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Patents |
|
6.7 |
|
$ |
450 |
|
|
|
$ |
(65 |
) |
|
|
$ |
385 |
|
Customer relationships |
|
10.0 |
|
|
170 |
|
|
|
|
(16 |
) |
|
|
|
154 |
|
Developed technology |
|
10.0 |
|
|
1,820 |
|
|
|
|
(167 |
) |
|
|
|
1,653 |
|
Total intangible assets |
|
|
|
$ |
2,440 |
|
|
|
$ |
(248 |
) |
|
|
$ |
2,192 |
|
The Company recognized amortization expense related to intangible assets of $0.3 million and $0.2 million for the years ended December 31, 2024, and 2023, respectively.
Amortization expense related to intangible assets at December 31, 2024, in each of the next five years and beyond is expected to be incurred as follows (in thousands):
(in thousands) |
|
Amount |
|
|
2025 |
|
$ |
270 |
|
2026 |
|
|
270 |
|
2027 |
|
|
262 |
|
2028 |
|
|
260 |
|
2029 |
|
|
227 |
|
Thereafter |
|
|
633 |
|
|
|
$ |
1,922 |
|
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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.