Company: PAX
Filing Date: 2025-05-15
Form Type: 20-F
Source: 0001628280-25-025640
Chunk: 313

Company: Patria Investments Ltd
Filing Date: 2025-05-15
Form: 20-F
Item: Item 19
Chunk 313
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amaroopin brands acquired through business combination. The table below includes the amortization period:

  Intangible asset                            Amortization period                                             
                                              Moneda                   VBI           Igah         Kamaroopin  
  Non-contractual customer relationships      9 years                  29 years      3 years      5 years     
  Brands                                      5 years                  8 years       —            8 years     

(d) Goodwill recognized in 2024 results from the acquisitions of Tria, GPMS, CSHG, and Nexus through IFRS 3 business combinations (refer to note 30).

Tax impacts of goodwill recognized:

(i) Goodwill recognized for Moneda; Igah; Hanuman; Patria Asset Management; GPMS and Nexus are not deductible for tax purposes given the jurisdiction and/or specific tax regulations applicable to the acquiring companies for the transactions.

(ii) The current arrangement of the goodwill recognized for the acquisition of Tria and for the Real Estate business of CSHG does not allow its tax deductibility under the Brazilian tax regulations. However, we are working with tax consultants to determine the options available to the Group, taking into consideration the necessary conditions and restructurings required for the goodwill to be utilized for tax purposes.

(iii) Goodwill recognized of VBI and the first tranche of Kamaroopin for interest held through Brazilian subsidiaries is not deductible for tax purposes until there is the absorption of the invested entity’s assets due to a merger, split, and/or incorporation. Upon restructuring, the deferred tax will be recognized in line with the Brazilian tax laws and regulations.

Impairment considerations:

The Group performs an impairment test annually and when circumstances indicate the carrying value may be impaired. The recoverable amounts of acquired entities are based on value-in-use. Key assumptions to determine the value-in-use include discounted cash flow calculations based on current and past performance forecasts and considering current market indicators for the respective countries in which the entities operate.

No impairment losses on goodwill have been recognized for the years ended December 31, 2024, 2023 and 2022 based on the value-in-use as recoverable amount.

The following cash generating units (CGUs) were tested for impairment together with key assumptions used for the year ended December 31, 2024:

  Key metric*                                           IGAH               VBI                Moneda             Kamaroopin Hanuman      Patria Asset Management  
  Country                                               Brazil             Brazil             Chile              Brazil                  Colombia                 
  Forecast period –