| | | | | | | | | | | | | | | Brand | | | | | | | | | name | | | | | Software | | License | | (Note) | | Total | | | USD’000 | | USD’000 | | USD’000 | | USD’000 | COST | | | | | | | | | At January 1, 2024 | | 169 | | 486 | | 1,600 | | 2,255 | Additions | | 7 | | — | | — | | 7 | Disposals | | (10) | | — | | — | | (10) | Exchange adjustments | | 1 | | (2) | | — | | (1) | At December 31, 2024 | | 167 | | 484 | | 1,600 | | 2,251 | Additions | | 126 | | 9 | | — | | 135 | Disposals | | (68) | | (59) | | — | | (127) | Exchange adjustments | | 22 | | 1 | | — | | 23 | At December 31, 2025 | | 247 | | 435 | | 1,600 | | 2,282 | ACCUMULATED DEPRECIATION | | | | | | | | | At January 1, 2024 | | 87 | | 166 | | — | | 253 | Charge for the year | | 58 | | 65 | | — | | 123 | Exchange adjustments | | — | | (3) | | — | | (3) | At December 31, 2024 | | 145 | | 228 | | — | | 373 | Charge for the year | | 79 | | 28 | | — | | 107 | Disposals | | (68) | | (59) | | — | | (127) | Exchange adjustments | | 18 | | — | | — | | 18 | At December 31, 2025 | | 174 | | 197 | | — | | 371 | ACCUMULATED IMPAIRMENT | | | | | | | | | At January 1, 2024, December 31, 2024 and December 31, 2025 | | — | | — | | 1,600 | | 1,600 | CARRYING AMOUNT | | | | | | | | | At December 31, 2024 | | 22 | | 256 | | — | | 278 | At December 31, 2025 | | 73 | | 238 | | — | | 311 |
| Note: | The brand name was founded in New York in 2016 and played a crucial role in the retention of customer and overall operation of HN&T. Being a Michelin awarded brand, HN&T had garnered wide range of positive reviews from the local media which the management of the Group expected the brand to bring in economic benefits and attract more local customers to generate net cash flows for the Group. |
As a result, the brand name was considered by the management of the Group as having an indefinite useful life because it was expected to contribute to net cash inflows indefinitely. The brand name will not be amortized until its useful life is determined to be finite. Instead it will be tested for impairment annually and whenever there is an indication that it may be impaired. The brand name was fully impaired in prior years, and accordingly its carrying amount remains nil.
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