NOTE 8 – INTANGIBLE ASSETS AND GOODWILL

Changes in the carrying amount of the Company’s goodwill for the years ended December 31, 2024 and 2023 are as follows:

SCHEDULE OF GOODWILL

Goodwill impairment assessment for the year ended December 31, 2024

As of December 31, 2024, the Company performed an impairment analysis for its reporting units. Based on the Company’s assessment, it was concluded that the fair value of the Therapies reporting unit was below its carrying amounts and, accordingly, the Company recorded a full impairment of goodwill of $1,211 thousand (see note 1).

In evaluating the fair value of reporting units under the income approach, the Company used a discounted cash flow model. Key assumptions used to determine the estimated fair value included: (a) internal cash flows forecasts for 5 years following the assessment date, including expected revenue growth, costs to produce, operating profit margins and estimated capital needs; (b) an estimated terminal value using a terminal year long-term future growth determined based on the growth prospects of the reporting units; and (c) a discount rate which reflects the weighted average cost of capital adjusted for the relevant risk associated with the Company’s reporting unit operations and the uncertainty inherent in the Company’s internally developed forecasts.

Actual results may differ from those assumed in the Company’s valuation method. It is reasonably possible that the Company’s assumptions described above could change in future periods. If any of these were to vary materially from the Company’s plans, it may record impairment of goodwill allocated to any of these reporting units in the future.

Other Intangible Assets

Other intangible assets consisted of the following:

SCHEDULE OF OTHER INTANGIBLE ASSETS

Intangible assets amortization expenses were approximately $728 thousand and $721 thousand for the years ended December 31, 2024 and December 31, 2023, respectively.