| Goodwill and Intangibles, Net |
Note
6: Goodwill and Intangibles, Net
Goodwill reported is the result of multiple acquisitions made by Alliance Entertainment Holding Corporation over
the years. The $4.97 million increase in goodwill during the fiscal year ended June 30, 2026 relates to the Endstate business combination
discussed in Note 22, Business Combination (Endstate). For the fiscal year ended June 30, 2026 and June 30, 2025, goodwill activity consisted
of the following:
Schedule of Goodwill
| ($ in thousands) | |
June 30, 2026 | | |
June 30, 2025 | |
| Goodwill, Beginning Balance | |
$ | 89,116 | | |
| 89,116 | |
| Additions | |
$ | 4,965 | | |
| - | |
| Goodwill, Ending Balance | |
$ | 94,081 | | |
| 89,116 | |
Intangibles,
Net consists of the following at:
Schedule of Intangible Assets, Net
| ($in thousands) | |
| | |
Year ended June 2026 | | |
Year Ended June 2025 | |
| Intangibles: | |
Intangibles Cost | | |
Accum. Amortization | | |
Intangibles, Net | | |
Accum. Amortization | | |
Intangibles, Net | |
| Customer Relationships | |
$ | 78,000 | | |
| (75,582 | ) | |
$ | 2,418 | | |
| (73,928 | ) | |
$ | 4,072 | |
| Contract Acquisition | |
$ | 2,100 | | |
| (570 | ) | |
$ | 1,530 | | |
| (180 | ) | |
$ | 1,620 | |
| Tradename - HMBR | |
$ | 6,800 | | |
| - | | |
$ | 6,800 | | |
| - | | |
| 6,800 | |
| Trademark - Endstate | |
$ | 800 | | |
| (40 | ) | |
$ | 760 | | |
| - | | |
| - | |
| Technology - Endstate | |
$ | 1,550 | | |
| (78 | ) | |
$ | 1,473 | | |
| - | | |
| - | |
| Customer Relationships - Endstate | |
$ | 900 | | |
| (45 | ) | |
$ | 855 | | |
| - | | |
| - | |
| Mecca Customer Relationships | |
$ | 8,023 | | |
| (6,969 | ) | |
$ | 1,054 | | |
| (6,393 | ) | |
$ | 1,630 | |
| Customer List | |
$ | 12,760 | | |
| (9,192 | ) | |
$ | 3,568 | | |
| (8,407 | ) | |
$ | 4,353 | |
| Total | |
$ | 110,933 | | |
| (92,476 | ) | |
$ | 18,457 | | |
| (88,908 | ) | |
$ | 18,475 | |
During
the years ended June 30, 2026, and 2025, the Company recorded amortization expense of $3.6 million and $3.5 million, respectively.
Expected
amortization over the next five years and thereafter, as of June 30, 2026, is as follows:
Schedule of Expected Amortization Over the Next Five Years and Thereafter
| ($ in thousands) | |
Intangible Assets | |
| Year Ended June 30, | |
| | |
| 2027 | |
$ | 3,829 | |
| 2028 | |
| 2,788 | |
| 2029 | |
| 1,544 | |
| 2030 | |
| 966 | |
| 2031 | |
| 696 | |
| Thereafter | |
| 1,834 | |
| Total Expected Amortization | |
$ | 11,657 | |
| Indefinite-lived Intangible asset | |
| 6,800 | |
| Total Intangible Assets | |
$ | 18,457 | |
|