v3.26.1
INTANGIBLE ASSETS
 3 Months Ended
Mar. 31, 2026
Intangible Asset, Goodwill and Other [Abstract]  
INTANGIBLE ASSETS

 

10.INTANGIBLE ASSETS

 

The Company’s intangible assets are finite lived and consist primarily of customer relationships and acquired technology, which are amortized on a straight-line basis over their estimated useful lives of 5 years. The company also holds indefinite-lived trademarks, which are not amortized. As of March 31, 2026, the carrying amount of indefinite-lived trademarks was $13 thousand.

 

On July 1, 2025, pursuant to the terms of an asset purchase agreement dated the same day, between the Company and Flyhomes, the Company acquired the AI-powered consumer home search portal and related technology assets of Flyhomes for an aggregate purchase price of $2.75 million, with the consideration paid in cash. The transaction was accounted for as an asset acquisition in accordance with ASC 805. The acquired technology is included within acquired technology intangible assets and is amortized on a straight-line basis over an estimated useful life of 5 years.

 

Reconciliation of Carrying Amounts (in thousands):

 

 

  

December 31,

2024

   Additions  

December

31, 2025

   Additions   Impairment  

March 31,

2026

 
Cost                              
Indefinite-lived trademarks  $25   $—   $25   $—   $(12)  $13 
Acquired Technology   1,168    2,750    3,918    —    —    3,918 
Customer Relationships   2,839    —    2,839    —    —    2,839 
Other   456    —    456    —    —    456 
Total  $4,488   $2,750   $7,238   $—   $(12)  $7,226 
                               
Accumulated Amortization                              
Acquired Technology  $632   $509   $1,141   $168   $—   $1,309 
Customer Relationships   1,136    567    1,703    142    —    1,845 
Other   145    92    237    23    —    260 
Total  $1,913   $1,168   $3,081   $333   $—   $3,414 
                               
Carrying Amounts  $2,575        $4,157             $3,812 

 

The Company recorded amortization expense of $333 thousand and $223 thousand for the three months ended March 31, 2026 and March 31, 2025, respectively.

 

As of March 31, 2026, expected amortization (in thousands) related to intangible assets will be:

 

Expected Amortization    
2026, excluding the three months ended March 31, 2026  $997 
2027   1,330 
2028   647 
2029   550 
2030 and thereafter   275 
Total  $3,799 

 

 

THE REAL BROKERAGE INC.

NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED MARCH 31, 2026 AND 2025

UNAUDITED