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Goodwill and Intangible Assets
 9 Months Ended
Sep. 30, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets

(8) Goodwill and Intangible Assets

 

Goodwill

 

Goodwill is related to the acquisition of Spectrum Semiconductor Materials Inc. on December 15, 2021. Goodwill is primarily related to expected improvements and technology performance and functionality, as well as sales growth from future product and service offerings and new customers, together with certain intangible assets that do not qualify for separate recognition. Goodwill is generally not amortizable for tax and financial statement purposes. As of September 30, 2025 and December 31, 2024 goodwill was $4,696,883, respectively.

 

 

AmpliTech Group, Inc.

Notes To Condensed Consolidated Financial Statements

For the Nine Months Ended September 30, 2025 and 2024

 

Other Intangible Assets

 

Intellectual property and customer relationships of approximately $8,200,000 was acquired through the Titan Asset Acquisition and will be used in the development and manufacturing of 5G Oran products. As of September 30, 2025, total consideration consisted of cash of $3,500,000, 914,635 shares of common stock valued at approximately $1,700,000 and a contingent liability of $3,000,000. Please refer to Note 13 for the description of the intangible asset acquisition.

 

In September 2025, additional IP assets of $2,200,000 were acquired to support 5G development and strengthen our technology portfolio. This acquisition was financed through a cash payment of $700,000, with the remaining balance recorded in accounts payable at September 30, 2025.

 

On July 26, 2024, the Company’s AGTGSS division entered into a licensing product agreement, which was amended as of September 12, 2025. Under the terms of the agreement, the licensor agreed to an exclusive United States distribution and global licensing rights for certain 5G telecom equipment for 24 months for the purpose of marketing, selling, renting, deployment and maintenance of the licensed products with the Company. For services, the Company will pay the Licensor certain software IP license fees and product certification support in the amount of $1,790,000. As of September 30, 2025, the $1,790,000 payment was recorded as follows: $1,250,000 was allocated towards the licensing agreement of which $540,000 was paid in 2025, $432,000 for lab equipment (See Note 7) and $108,000 in certification fees, which was recorded in research in development on the income statement.

 

Intangible assets consisted of the following at September 30, 2025:

  

   Gross Carrying   Accumulated       Weighted 
   Amount   Amortization   Net   Average Life 
Trade name  $514,284   $-   $514,284    Indefinite 
Intellectual Property   9,080,288    277,284    8,803,004    10.67 
Customer relationships   3,508,710    458,877    3,049,833    14.08 
Licenses   1,250,000    52,083    1,197,917    1.95 
Total  $14,353,282   $788,244   $13,565,038      

 

Amortization expense for the three months ended September 30, 2025 and 2024 was $282,582 and $37,578, respectively.

 

Amortization expense for the nine months ended September 30, 2025 and 2024 was $461,448 and $112,508, respectively

 

Annual amortization of intangible assets are as follows:

  

      
2025  $420,082 
2026   1,680,328 
2027   1,471,995 
2028   1,055,328 
2029   1,055,328 
Thereafter   7,367,693 
Total   $13,050,754 

 

 

AmpliTech Group, Inc.

Notes To Condensed Consolidated Financial Statements

For the Nine Months Ended September 30, 2025 and 2024