Goodwill and Intangible Assets |
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| Goodwill and Intangible Assets | Note 7 - Goodwill and Intangible Assets
Goodwill
Goodwill represents the excess of the purchase price over the estimated fair value of identifiable net assets acquired in business combinations.
In connection with the XTI Merger in March 2024, the Company recognized goodwill of approximately $12.4 million related to its Inpixon Business (see Note 19).
The following table summarizes the changes in the carrying amount of Goodwill for the year ended December 31, 2025 (in thousands):
Impairment – Inpixon Business (Discontinued Operations)
During 2025, the Company recognized goodwill impairment charges related to the Inpixon Business, which is presented as discontinued operations. These charges are reflected in the goodwill rollforward above. See Note 19 – Discontinued Operations for additional information regarding the impairment and classification of the Inpixon Business.
UAS Reporting Unit (Drone Nerds)
Goodwill of approximately $11.5 million was recognized in connection with the Drone Nerds acquisition on November 10, 2025. The goodwill is attributable to expected synergies, expanded distribution capabilities, and growth opportunities in the enterprise drone market.
As of December 31, 2025, no impairment indicators were identified for the UAS reporting unit. The Company performs its annual goodwill impairment test during the fourth quarter. Intangible Assets
Intangible assets consist primarily of patents, and trade names and trademarks acquired in the Drone Nerds acquisition. The following table presents intangible assets associated with continuing operations.
Amortization Expense
Amortization expense for continuing operations for the years ended December 31, 2025 and 2024 was approximately $0.2 million and $0.03 million, respectively.
Future amortization expense related to intangible assets associated with continuing operations is estimated as follows (in thousands):
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