7.
INTANGIBLE ASSETS

Patent Costs

Patent costs, which are included in Other assets in the accompanying Consolidated Balance Sheets, as of December 31 were as follows (in thousands):

 

 

 

2025

 

 

2024

 

Patent costs

 

$

540

 

 

$

637

 

Accumulated amortization

 

 

(421

)

 

 

(488

)

 

$

119

 

 

$

149

 

 

Definite lived intangible assets, such as patent rights, are amortized and tested for impairment if a triggering event occurs.

Amortization expense was approximately $30,000, $43,000 and $66,000 in 2025, 2024, and 2023, respectively.

Internally Developed Software

The amount of capitalized software placed in service is being amortized on a straight-line basis over fifteen years, and is included in Other assets in the accompanying Consolidated Balance Sheets. Balances as of December 31 were as follows (in thousands):

 

 

 

2025

 

 

2024

 

 

Internally developed software

 

$

20,500

 

 

$

20,469

 

 

Accumulated amortization

 

 

(1,367

)

 

 

 

 

 

$

19,133

 

 

$

20,469

 

 

The estimated future amortization expense from internally developed software held as of December 31, 2025, is projected to be $1,367,000, in each of the fiscal years 2026, 2027, 2028, 2029, and 2030.

Historical Timeline

Fiscal YearFiled
2025Mar 2, 2026Showing above
2024Mar 3, 2025
2023Feb 28, 2024
2022Feb 28, 2023
2021Mar 1, 2022
2020Mar 1, 2021
2019Feb 28, 2020
2018Feb 28, 2019
2017Mar 9, 2018
2016Mar 7, 2017
2015Mar 8, 2016

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.