| Intangible Assets and Goodwill |
NOTE 6. INTANGIBLE ASSETS AND GOODWILL Intangible assets and Goodwill consist of the following:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Amounts in 000’s) |
|
Bed licenses
(included
in property and
equipment)1) |
|
|
Bed Licenses -
Separable (2) |
|
|
Lease
Rights |
|
|
Pharmacy Intangibles |
|
|
Total |
|
|
Pharmacy Intangibles - Trade Name (2) |
|
|
Goodwill (2) |
|
Balances, December 31, 2025 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross |
|
$ |
11,796 |
|
|
$ |
2,471 |
|
|
$ |
176 |
|
|
$ |
1,430 |
|
|
$ |
15,873 |
|
|
$ |
740 |
|
|
$ |
1,585 |
|
Accumulated amortization |
|
|
(4,880 |
) |
|
|
— |
|
|
|
(124 |
) |
|
|
(33 |
) |
|
|
(5,037 |
) |
|
|
— |
|
|
|
— |
|
Net carrying amount |
|
$ |
6,916 |
|
|
$ |
2,471 |
|
|
$ |
52 |
|
|
$ |
1,397 |
|
|
$ |
10,836 |
|
|
$ |
740 |
|
|
$ |
1,585 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balances, June 30, 2026 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross |
|
$ |
11,796 |
|
|
$ |
2,471 |
|
|
$ |
176 |
|
|
$ |
1,427 |
|
|
$ |
15,870 |
|
|
$ |
740 |
|
|
$ |
1,585 |
|
Accumulated amortization |
|
|
(5,056 |
) |
|
|
— |
|
|
|
(133 |
) |
|
|
(74 |
) |
|
|
(5,263 |
) |
|
|
— |
|
|
|
— |
|
Net carrying amount |
|
$ |
6,740 |
|
|
$ |
2,471 |
|
|
$ |
43 |
|
|
$ |
1,353 |
|
|
$ |
10,607 |
|
|
$ |
740 |
|
|
$ |
1,585 |
|
(1)Non-separable bed licenses are included in property and equipment as is the related accumulated amortization expense (see Note 4 – Property and Equipment). (2)The Company does not amortize indefinite-lived intangibles, which consist of separable bed licenses and goodwill. The following table summarizes amortization expense for the three and six months ended June 30, 2026 and 2025:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
|
Six Months Ended June 30, |
|
(Amounts in 000’s) |
|
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
|
Bed licenses |
|
$ |
89 |
|
|
$ |
87 |
|
|
$ |
176 |
|
|
$ |
176 |
|
Lease rights |
|
|
4 |
|
|
|
6 |
|
|
|
9 |
|
|
|
10 |
|
Pharmacy Intangibles |
|
|
25 |
|
|
|
— |
|
|
|
41 |
|
|
|
— |
|
Total amortization expense |
|
$ |
118 |
|
|
$ |
93 |
|
|
$ |
226 |
|
|
$ |
186 |
|
Expected amortization expense for the years ending December 31, for all definite-lived intangibles, for the remaining six months ending December 31, 2026 and each of the next four years and thereafter is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
(Amounts in 000’s) |
|
Pharmacy Intangibles |
|
|
Bed
Licenses |
|
|
Lease
Rights |
|
For the remaining six months ending December 31, 2026 |
|
$ |
44 |
|
|
$ |
176 |
|
|
$ |
9 |
|
2027 |
|
|
88 |
|
|
|
352 |
|
|
|
18 |
|
2028 |
|
|
88 |
|
|
|
352 |
|
|
|
16 |
|
2029 |
|
|
88 |
|
|
|
352 |
|
|
|
— |
|
2030 |
|
|
88 |
|
|
|
352 |
|
|
|
— |
|
Thereafter |
|
|
957 |
|
|
|
5,156 |
|
|
|
— |
|
Total expected amortization expense |
|
$ |
1,353 |
|
|
$ |
6,740 |
|
|
$ |
43 |
|
|