6 - GOODWILL AND INTANGIBLE ASSETS

 

Goodwill

 

The following is a summary of activity in goodwill for the years ended December 31, 2025 and 2024:

 

Balance at December 31, 2023  $4,797,078 
Foreign exchange transaction   (17,453)
Balance at December 31, 2024   4,779,625 
Foreign exchange transactions   322,000 
Balance at December 31, 2025  $5,101,625 

 

Intangible Assets

 

Intangible assets consist of the following:

 

   As of December 31, 2025
   Amortization
Period
  Costs as of
January 1, 2025
   Additions   Disposals   Ending
Costs
   Accumulated
Amortization
   Accumulated
Impairment
   Net Book
Value
 
Patents  15 years  $7,551,468   $239,128   $        -   $7,790,596   $(6,844,695)  $          -   $945,901 
Proprietary technology  10 years   -    6,904,306    -    6,904,306    (423,343)   -    6,480,963 
Intangible assets, net     $7,551,468   $7,143,434   $-   $14,694,902   $(7,268,038)  $-   $7,426,864 
   As of December 31, 2024
   Amortization Period  Costs as of
January 1, 2024
   Additions   Disposals   Ending
Costs
   Accumulated
Amortization
   Accumulated
Impairment
   Net Book
Value
 
Patents  5-15 years  $7,332,227   $219,241   $      -   $7,506,485   $(6,765,407)  $ -   $786,061 
IPR&D  5 years   5,015,694    -    -    5,015,694    (3,554,784)   (1,460,910)   - 
Other intellectual assets  5 years   969,278    -    -    969,278    (969,278)   -    - 
Intangible assets, net     $13,317,199   $219,241   $-   $13,536,440   $(11,289,469)  $(1,460,910)  $786,061 

 

Intangible assets primarily consist of proprietary technology, patents, patent applications, and in-process research and development (“IPR&D”) and other identifiable intangible assets. Intangible assets are generally amortized on a straight-line basis over the periods of benefit. The Company’s patents have estimated remaining economic useful lives ranging from 5-15 years and the proprietary technology acquired from Crowdkeep Inc. has an estimated remaining useful life of 10 years. Management reviews intangible assets for impairment when events and circumstances warrant. During the years ended December 31, 2025 and 2024, there were no events that necessitated additional impairment of intangible assets.

 

Intangible asset amortization expense for the years ended December 31, 2025 and 2024, totaled $502,630 and $62,000, respectively.

 

Future estimated amortization expense for the Company’s intangible assets is approximately as follows:

 

Future estimated amortization as of December 31, 2025    
2026  $742,464 
2027   742,464 
2028   744,281 
2029   742,464 
2030   742,464 
Thereafter   3,712,727 
   $7,426,864 
Free Sentinel

Want the next VEEA INC. goodwill & intangibles disclosure the moment it drops?

Set a Sentinel and we'll alert you the moment VEEA INC.'s next filing hits EDGAR. No credit card, your email never gets sold.

Track for free

Historical Timeline

Fiscal YearFiled
2025Apr 15, 2026Showing above
2024Apr 15, 2025

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.