v3.26.1
GOODWILL AND INTANGIBLE ASSETS
9 Months Ended
Jan. 31, 2026
GOODWILL AND INTANGIBLE ASSETS  
GOODWILL AND INTANGIBLE ASSETS

NOTE 9. GOODWILL AND INTANGIBLE ASSETS

Goodwill

The Company recognized $69.2 million in goodwill as the result of the business combination with Barnes & Noble Education on June 10, 2024. See Note 4. Business Combination for additional information. The carrying value of goodwill was $69.2 million as of January 31, 2026 and April 30, 2025.

In accordance with ASC Topic 350 - Intangibles - Goodwill and Other, the Company did not record any goodwill impairment losses during the three and nine months ended January 31, 2026, the three months ended January 31, 2025, and the period from June 10, 2024 to January 31, 2025. Goodwill represents the future economic benefit attributable to Barnes & Noble Education’s assembled workforce, which is not individually and separately recognized as an intangible asset. As such, the carrying value of goodwill has been allocated to Barnes & Noble Education Segment and none of the goodwill has been allocated to the Immersion Segment.

Intangible Assets, net

The following is a summary of intangible assets, excluding goodwill, recorded as Intangible assets, net on the Company’s Condensed Consolidated Balance Sheets as of January 31, 2026 and April 30, 2025 (in thousands):

 

January 31, 2026

 

Gross Carrying
Amount

 

Accumulated
Amortization

 

Net Carrying
Amount

 

Weighted-Average
Remaining Life (years)

 

Trade name

$

45,000

 

N/A

 

$

45,000

 

Indefinite

 

Customer relationships

 

50,000

 

 

(6,305

)

 

43,695

 

 

11.4

 

Total

$

95,000

 

$

(6,305

)

$

88,695

 

 

 

 

 

April 30, 2025

 

Gross Carrying
Amount

 

Accumulated
Amortization

 

Net Carrying
Amount

 

Weighted-Average
Remaining Life (years)

 

Trade name

$

45,000

 

N/A

 

$

45,000

 

Indefinite

 

Customer relationships

 

50,000

 

 

(3,419

)

 

46,581

 

 

12.2

 

Total

$

95,000

 

$

(3,419

)

$

91,581

 

 

 

 

Amortization of finite-lived intangible assets is computed using the straight-line method over their estimated useful lives. Trade name is determined to have an indefinite useful life and is not subject to amortization.

Amortization expense was $1.0 million and $2.9 million for the three and nine months ended January 31, 2026, respectively, and $1.0 million and $2.5 million for the three months ended January 31, 2025 and the period from June 10, 2024 to January 31, 2025, respectively.

Estimated amortization expense of the intangible assets to be recognized by the Company are as follows (in thousands):

Fiscal Year ended April 30,

 

Amount

 

Remainder of 2026

 

$

962

 

2027

 

 

3,846

 

2028

 

 

3,846

 

2029

 

 

3,846

 

2030

 

 

3,846

 

Thereafter

 

 

27,349

 

Total

 

$

43,695