Goodwill and Intangible Assets

3 Months Ended

Mar. 31, 2026

Note 9. Goodwill and Intangible Assets

Goodwill

The change in the carrying amount of goodwill by reportable segment were as follows:


	Electronic Components			Mechanical Components			Total
Balance as of December 31, 2025	$		1,307,611	$		1,437,740	$		2,745,351
Additions		—			17,775			17,775
Foreign currency translation		(548)			(5,698)			(6,246)
Balance as of March 31, 2026	$	1,307,063		$	1,449,817		$	2,756,880

Intangible Assets

Intangible assets consisted of the following:


	March 31, 2026
	Weighted- Average Remaining Useful Lives (in years)	Gross Amount		Accumulated Amortization				Net Book Value
Amortized intangible assets:
Customer lists / relationships	20	$	2,120,784	$		(297,837	)	$	1,822,947
Patents and technology	16		401,275			(48,899	)		352,376
Trademarks / trade names	14		252,902			(49,938	)		202,964
Total amortized intangible assets			2,774,961			(396,674	)		2,378,287
Indefinite-lived intangible assets:
Trademarks / trade names			36,800		—				36,800
Total intangible assets		$	2,811,761	$		(396,674	)	$	2,415,087


	December 31, 2025
	Gross Amount		Accumulated Amortization			Net Book Value
Amortized intangible assets:
Customer lists / relationships	$	2,107,860	$	(273,349	)	$	1,834,511
Patents and technology		395,546		(42,416	)		353,130
Trademarks / trade names		250,873		(45,435	)		205,438
Total amortized intangible assets		2,754,279		(361,200	)		2,393,079
Indefinite-lived intangible assets:
Trademarks / trade names		36,800		—			36,800
Total intangible assets	$	2,791,079	$	(361,200	)	$	2,429,879

Amortization expense for amortized intangible assets was $36,023 and $34,080 for the three months ended March 31, 2026 and 2025, respectively.

As of March 31, 2026, estimated amortization expense for amortized intangible assets for the next five years and thereafter was as follows:


Years Ending December 31:	Amount
Remaining portion of 2026	$	107,994
2027		143,665
2028		143,565
2029		143,454
2030		142,123
Thereafter		1,697,486
Total expected future amortization expense	$	2,378,287

Arxis, Inc. 10-Q