(6) Goodwill and Intangible Assets

 

The results of the Company’s annual goodwill impairment tests for the years ended December 31, 2025 and 2024 indicated that no goodwill impairment existed as of the test date.

 

The change in the carrying amount of goodwill during the year ended December 31, 2025 included the following (in thousands):

 

December 31, 2024  $7,302 
Divestiture   (1,228)
December 31, 2025   6,074 

 

The following table sets forth information regarding intangible assets (in thousands):

 

December 31, 2025: 

Weighted

Average Life

  Cost  

Accumulated

Amortization

   Net 
Patents  13 years  $1,027   $(728)  $299 

 

December 31, 2024: 

Weighted

Average Life

  Cost  

Accumulated

Amortization

   Net 
Patents  11 years  $2,777   $(948)  $1,829 
Customer List  6 years   8,000    (2,445)   5,555 
Tradenames  10 years   1,190    (218)   972 
      $11,967   $(3,611)  $8,356 

 

Amortization expense was $1.6 million and $1.7 million for the years ended December 31, 2025 and 2024. The following is a summary of estimated future amortization expense for intangible assets as of December 31, 2025 (in thousands):

 

      
2026   86 
2027   52 
2028   52 
2029   46 
2030   33 
Thereafter   30 
Total  $299 

 

 

Historical Timeline

Fiscal YearFiled
2025Mar 31, 2026Showing above
2024Mar 6, 2025
2023Apr 1, 2024
2022Mar 7, 2023
2021Mar 8, 2022
2020Feb 24, 2021
2019Mar 5, 2020
2018Apr 1, 2019
2015Mar 24, 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.