YUNHONG GREEN CTI LTD.YHGJ

YUNHONG GREEN CTI LTD. Goodwill & Intangibles Disclosure

10-KFiled Apr 16, 20211 min read
15.
  
Goodwill
 
Under the provisions of U.S. GAAP, goodwill is subject to at least annual assessments for impairment by applying a fair-value based test. U.S. GAAP also requires that an acquired intangible asset should be separately recognized if the benefit of the intangible asset is obtained through contractual or other legal rights, or if the asset can be sold, licensed, rented or exchanged, regardless of the acquirer's intent to do so.
 
In the
first
quarter of
2019,
the Company identified an impairment indicator related to the goodwill associated with Clever. As a result of an impairment test, the Company fully impaired the goodwill related to Clever in the
first
quarter and recorded an impairment charge of
$220,000.
In the
first
quarter of
2019,
the Company identified an impairment indicator related to the goodwill associated with Flexo. As a result of an impairment test, the Company fully impaired the goodwill related to Flexo in the
first
quarter and recorded an impairment charge of
$1,033,000.
  The goodwill balance as of
December 31, 2020
and
2019
is
zero
.   
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Historical Timeline

Fiscal YearFiled
2020Apr 16, 2021Showing above
2019May 15, 2020
2018Apr 16, 2019
2017Apr 2, 2018
2016Mar 31, 2017
2015Mar 30, 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.

Other Available Disclosures

Income TaxesRevenueEarnings Per ShareFair ValuePP&ELeasesSegmentsDebtCommitmentsNew Standards