NOTE 5 – Goodwill and Intangible Assets

Goodwill is tested for impairment annually, or more frequently if events or changes in circumstances indicate that the carrying amount may not be recoverable. The Company operates as a single reporting unit for purposes of its goodwill impairment assessment.

As part of its annual impairment test during the year ended December 31, 2025, the Company recorded a goodwill impairment charge of $2,148 thousand. After giving effect to this impairment, the carrying amount of goodwill was $6,589 thousand as of December 31, 2025, which remained unchanged as of March 31, 2026.

The Company initially evaluates qualitative factors, including macroeconomic conditions, changes in the business environment, and reporting unit‑specific events, to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount. If the qualitative assessment is bypassed or indicates potential impairment, a quantitative impairment test is performed by comparing the reporting unit’s estimated fair value to its carrying amount. The estimated fair value is determined using a weighted combination of the income and market approaches.

The Company completed a qualitative goodwill impairment assessment as of March 31, 2026, and determined that no impairment was necessary. No goodwill impairment was recognized for the three months ended March 31, 2026 and March 31, 2025.

Intangible assets consisted of the following (in thousands):

Future amortization expense on intangible assets as of March 2026 is anticipated to be as follows (in thousands):