v3.26.1
Goodwill and Intangible Assets
6 Months Ended
Jun. 30, 2026
Goodwill and Intangible Assets  
Goodwill and Intangible Assets

Note 5. Goodwill and Intangible Assets

Goodwill

In the third quarter of fiscal 2021, we completed the AffloVest Acquisition. The purchase price of the AffloVest product line exceeded the net acquisition-date estimated fair value amounts of the identifiable assets acquired and the liabilities assumed by $31.1 million, which was assigned to goodwill. In the first quarter of fiscal 2026, we completed the acquisition of LymphaTech. The purchase price of LymphaTech exceeded the net acquisition-date estimated fair value amounts of the identifiable assets acquired and the liabilities assumed by $8.5 million, which was assigned to goodwill.

The changes in the carrying amount of goodwill were as follows:

(In thousands)

Goodwill at December 31, 2025

$

31,063

Addition for acquisition

8,491

Goodwill at June 30, 2026

$

39,554

Intangible Assets

Our patents and other intangible assets are summarized as follows:

Weighted-

At June 30, 2026

Average

Gross

Amortization

Carrying

Accumulated

Net

(In thousands)

  ​ ​ ​

Period

Amount

Amortization

Amount

Definite-lived intangible assets:

Patents

11 years

$

1,133

$

359

$

774

Tradenames

10 years

370

14

356

Customer relationships

8 years

31,540

11,513

20,027

Developed technology

7 years

16,703

5,818

10,885

Other

3 years

3,000

3,000

Subtotal

52,746

17,704

35,042

Unamortized intangible assets:

Tradenames

9,500

9,500

Patents pending

205

205

Total intangible assets

$

62,451

$

17,704

$

44,747

Weighted-

At December 31, 2025

Average

Gross

Amortization

Carrying

Accumulated

Net

(In thousands)

  ​ ​ ​

Period

Amount

Amortization

Amount

Definite-lived intangible assets:

Patents

11 years

$

1,083

$

318

$

765

Customer relationships

9 years

31,000

10,280

20,720

Developed technology

7 years

13,000

5,095

7,905

Subtotal

45,083

15,693

29,390

Unamortized intangible assets:

Tradenames

9,500

9,500

Patents pending

277

277

Total intangible assets

$

54,860

$

15,693

$

39,167

Amortization expense was $1.1 million and $0.9 million for the three months ended June 30, 2026 and 2025, respectively, and $2.0 million and $1.9 million for the six months ended June 30, 2026 and 2025, respectively, of which $0.5 million and $0.3 million for the three months ended June 30, 2026 and 2025, respectively, and $0.8 million and $0.6 million for the six months ended June 30, 2026 and 2025, respectively, was recorded in cost of sales revenue. Future amortization expenses are expected as follows:

(In thousands)

2026 (July 1 - December 31)

  ​ ​ ​

$

2,518

2027

5,405

2028

 

5,404

2029

 

4,536

2030

 

4,100

Thereafter

 

13,079

Total

$

35,042

In the third quarter of 2025, we performed our annual goodwill impairment test utilizing both the qualitative and quantitative approach described in FASB ASU No. 2021-03, “Intangibles—Goodwill and Other (Topic 350) – Accounting Alternative for Evaluating Triggering Events.” Based on the testing using the qualitative approach, it was determined that it was not more likely than not that the fair value of the reporting

unit was less than the carrying value. As a result, it was not deemed necessary to proceed to the quantitative test and no impairment was recognized.