Note 8 - Intangible Assets

6 Months Ended

Jun. 30, 2026

Notes to Financial Statements

Intangible Asset [Text Block]

NOTE 8 INTANGIBLE ASSETS

Intangible assets at June 30, 2026 and December 31, 2025 are comprised as follows:

(in thousands)		June 30, 2026
		Gross Carrying Value				Accumulated Amortization				Accumulated Impairment Losses				Net Carrying Value
Intangible assets subject to amortization:
Customer relationships		$	65,492			$	37,607			$	—			$	27,885
Developed technology			651				181				—				470
Intangible assets not subject to amortization:
Trade names			23,437				—				3,306				20,131
Total		$	89,580			$	37,788			$	3,306			$	48,486

(in thousands)		December 31, 2025
		Gross Carrying Value				Accumulated Amortization				Accumulated Impairment Losses				Net Carrying Value
Intangible assets subject to amortization:
Customer relationships		$	65,112			$	33,867			$	—			$	31,245
Developed technology			651				146				—				505
Intangible assets not subject to amortization:
Trade names			23,337				—				2,822				20,515
Total		$	89,100			$	34,013			$	2,822			$	52,265

During the six months ended June 30, 2026, the Company acquired intangible assets related to customer relationships of $0.9 million and trade name of $0.1 million, related to an acquisition.

As discussed in Note 5,"Acquisitions and Disposal," the Company disposed of Trinity on May 8, 2026. Trinity had intangible assets with a gross carrying value of $0.5 million and a net carrying value of zero at the disposal date.

The Company's intangible assets with definite useful lives are amortized either based on the patterns in which the economic benefits of the intangible assets are expected to be consumed or using the straight-line method over their estimated useful lives, which range from 5 to 15 years. Amortization of intangible assets was $2.1 million and $1.7 million for the three months ended June 30, 2026 and June 30, 2025, respectively ($4.3 million and $3.4 million for the six months ended June 30, 2026 and June 30, 2025, respectively).

The trade names intangible assets have indefinite useful lives and are not amortized. Indefinite-lived intangible assets are assessed for impairment annually as of November 30, or more frequently if events or circumstances indicate that the carrying value may not be recoverable. The Company may perform its impairment test for any indefinite-lived intangible asset through a qualitative assessment or elect to proceed directly to a quantitative impairment test, however, the Company may resume a qualitative assessment in any subsequent period if facts and circumstances permit.

At each quarter end of the first and second quarters of 2026 and 2025, the Company determined that certain trade names should be further examined under a quantitative approach due to actual revenue coming in lower than previous projections. Based upon these assessments, the Company recorded impairment charges for the three and six months ended June 30, 2026 of $0.3 million and $0.5 million, respectively, related to the CSuite (second quarter of 2026) and SNS (first quarter of 2026) trade names, and $0.1 million and $0.2 million, respectively, for the three and six months ended June 30, 2025 related to the Ravix trade name. The fair value of the CSuite ($0.5 million) trade name at June 30, 2026 and the SNS ($2.0 million) trade name at March 31, 2026 were estimated using the relief-from-royalty method. The significant unobservable inputs used in the relief-from-royalty method, which are level 3 inputs, include a royalty rate and discount rate. The reduction in value is primarily due to higher discount rates and a reduction in projected revenue. Future impairments may be recorded if discount rates increase further, or if actual revenue falls short of current projections. The valuation of these assets is not dependent on the underlying profit or loss generated by the respective business. Therefore, even if a change in revenue does not have a significant impact on operating results, it could significantly impact the fair value of the trade name.