22nd Century Group, Inc. Goodwill & Intangibles Disclosure
NOTE 4. – INTANGIBLE ASSETS, NET
Our intangible assets at December 31, 2025 and 2024 consisted of the following:
Gross | Accumulated |
| Net Carrying | |||||||||
December 31, 2025 | | Carrying Amount | | Amortization | Impairment |
| Amount | |||||
Definite-lived: | ||||||||||||
$ | 2,985 | $ | (2,461) | $ | (111) | $ | 413 | |||||
License fees |
| 5,331 | (2,174) | — | 3,157 | |||||||
Total amortizing intangible assets | $ | 8,316 | $ | (4,635) | $ | (111) | $ | 3,570 | ||||
Indefinite-lived: |
| |||||||||||
Trademarks | $ | 102 | ||||||||||
MSA signatory costs | 2,202 | |||||||||||
License fee for predicate cigarette brand | 350 | |||||||||||
Total indefinite-lived intangible assets | $ | 2,654 | ||||||||||
Total intangible assets, net | $ | 6,224 | ||||||||||
Gross | Accumulated |
| Net Carrying | |||||||||
December 31, 2024 | | Carrying Amount | | Amortization |
| Impairment | Amount | |||||
Definite-lived: | ||||||||||||
Patent | $ | 2,948 | $ | (2,268) | $ | (68) | $ | 612 | ||||
License fees |
| 4,415 | (1,990) | — | 2,425 | |||||||
Total amortizing intangible assets | $ | 7,363 | $ | (4,258) | $ | (68) | $ | 3,037 | ||||
Indefinite-lived: |
| |||||||||||
Trademarks | $ | 135 | ||||||||||
MSA signatory costs | 2,202 | |||||||||||
License fee for predicate cigarette brand | 350 | |||||||||||
Total indefinite-lived intangible assets | $ | 2,687 | ||||||||||
Total intangible assets, net | $ | 5,724 | ||||||||||
Aggregate intangible asset amortization expense comprises of the following:
Year Ended | |||||
December 31, | |||||
2025 | | 2024 | |||
Cost of goods sold | $ | 10 | $ | 10 | |
Research and development |
| 423 |
| 408 | |
Total amortization expense | $ | 433 | $ | 418 | |
During the years ended December 31, 2025 and 2024, the Company incurred impairment charges of $111 and $68, respectively, related to patents that are no longer being pursued. In addition, the Company disposed of $39 of trademark costs due to change in strategy.
The impairment charges are included in Other operating expenses, net on the Company’s Consolidated Statements of Operations and Comprehensive Loss.
Estimated future intangible asset amortization expense based on the carrying value as of December 31, 2025 is as follows:
| 2026 |
| 2027 | 2028 | 2029 | 2030 | Thereafter | |||||||||||
Amortization expense | $ | 377 | $ | 371 | $ | 331 | $ | 247 | $ | 242 | $ | 2,002 | ||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 26, 2026 | Showing above |
| 2024 | Mar 20, 2025 | |
| 2023 | Mar 28, 2024 | |
| 2022 | Mar 9, 2023 | |
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.