GOODWILL AND INTANGIBLE ASSETS, NETThe following table presents changes in the carrying amount of goodwill:
| | | | | | | | | | | | | | | | | | | | | | | |
| Defense and National Security | | Space Solutions | | Starlab Space Stations | | Total |
| Goodwill | $ | 94,728 | | | $ | 48,348 | | | $ | 4,747 | | | $ | 147,823 | |
| Accumulated impairment loss | (72,859) | | | (28,449) | | | — | | | (101,308) | |
| Balance as of December 31, 2024 | $ | 21,869 | | | $ | 19,899 | | | $ | 4,747 | | | $ | 46,515 | |
| OPC Acquisition | 3,995 | | | — | | | — | | | 3,995 | |
| EMSI Acquisition | 21,598 | | | — | | | — | | | 21,598 | |
| ExoTerra Acquisition | 57,290 | | | — | | | — | | | 57,290 | |
| Estes Acquisition | 28,276 | | | — | | | — | | | 28,276 | |
| Balance as of December 31, 2025 | $ | 133,028 | | | $ | 19,899 | | | $ | 4,747 | | | $ | 157,674 | |
| | | | | | | |
| Gross goodwill | $ | 205,887 | | | $ | 48,348 | | | $ | 4,747 | | | $ | 258,982 | |
| Accumulated impairment | (72,859) | | | (28,449) | | | — | | | (101,308) | |
| Net goodwill | $ | 133,028 | | | $ | 19,899 | | | $ | 4,747 | | | $ | 157,674 | |
Intangible assets, net consists of the following:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Weighted-Average Remaining Life | | December 31, 2025 | | December 31, 2024 |
| | Gross Carrying Amount | | Accumulated Amortization | | Net Carrying Amount | | Gross Carrying Amount | | Accumulated Amortization | | Net Carrying Amount |
| Trade name | 9 years | | $ | 10,372 | | | $ | (3,341) | | | $ | 7,031 | | | $ | 6,288 | | | $ | (3,120) | | | $ | 3,168 | |
| Customer relationships | 7 years | | 57,820 | | | (16,713) | | | 41,107 | | | 35,176 | | | (14,385) | | | 20,791 | |
| Developed technology | 11 years | | 58,742 | | | (8,143) | | | 50,599 | | | 16,750 | | | (6,025) | | | 10,725 | |
| Patents | 6 years | | 263 | | | (18) | | | 245 | | | $ | — | | | — | | | — | |
| Total intangible assets, net | 9 years | | $ | 127,197 | | | $ | (28,215) | | | $ | 98,982 | | | $ | 58,214 | | | $ | (23,530) | | | $ | 34,684 | |
For the years ended December 31, 2025, 2024 and 2023, amortization expense on intangible assets was approximately $8.5 million, $9.6 million and $6.5 million, respectively. Amortization expense is presented within amortization of acquired intangibles in the Company’s consolidated statement of operations.
The following table presents the future estimated amortization of intangible assets:
| | | | | |
| Year | Estimated Future Amortization Expense |
| 2026 | $ | 15,972 | |
| 2027 | 15,639 | |
| 2028 | 13,283 | |
| 2029 | 12,929 | |
| 2030 | 11,673 | |
| Thereafter | 29,486 | |
| Total | $ | 98,982 | |
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.