Note 5 - Intangible Assets, Net |
3 Months Ended |
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Mar. 31, 2026 | |
| Notes to Financial Statements | |
| Intangible Asset [Text Block] |
5. INTANGIBLE ASSETS, NET
Finite lived intangible assets are tested for impairment at least annually, while all intangibles are tested for impairment when events or changes in circumstances indicate that, more-likely-than-not, the carrying amount may not be recoverable. During the fourth quarter of fiscal 2025, as a result of industry conditions, primarily attributable to an agricultural oversupply impacting our market and resulting in a decrease in indoor and outdoor cultivation, as well as continued declines in operating cash flows and profitability, the Company assessed long-lived assets for impairment and recorded an impairment charge of $232,179. Of the impairment charge, $228,395 was related to finite-lived intangible assets and $3,784 was related to property, plant, and equipment. The loss was recorded in impairments in the consolidated statement of operations for the year ended December 31, 2025. The Company estimated fair value based on the income approach and market approach. Under the income approach, the Company estimated the fair value of the asset group on the present value of estimated future cash flows, which the Company considered to be a level 3 unobservable input in the fair value hierarchy. Amortization expense related to intangible assets was $5,933 for the three months ended March 31, 2025.
The carrying value of intangible assets, net, consisting of an indefinite-lived tradename was $2,801 as of March 31, 2026 and December 31, 2025.
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