v3.26.1
GOODWILL AND INTANGIBLE ASSETS
 6 Months Ended
Jun. 30, 2026
Intangible Asset, Goodwill and Other [Abstract]  
GOODWILL AND INTANGIBLE ASSETS

NOTE 6 – GOODWILL AND INTANGIBLE ASSETS

 

Goodwill

 

The following table shows the changes in the carrying amount of goodwill for the period:

  

Goodwill as of December 31, 2025 (1)  $70,984 
Acquisition   - 
Impairment   - 
Foreign currency translation adjustment   (2,463)
Goodwill as of June 30, 2026  $68,521 

 

  1) Related to the acquisition of the Streamex Exchange. See Note 5, Business Acquisition for additional information. Goodwill was initially measured in the functional currency of Streamex Exchange and translated into U.S. dollars using the exchange rate in effect on the acquisition date. Subsequent changes in foreign exchange rates are reflected in the cumulative translation adjustment within other comprehensive loss.

 

 

During the three and six months ended June 30, 2026, the Company evaluated the existence of any indicators of impairment in accordance with ASC 350, Intangibles—Goodwill and Other. Based on the qualitative assessment performed, management concluded that the combination of factors considered did not result in a triggering event requiring a quantitative impairment test. Based on the assessment, there was no goodwill impairment recognized in the three and six months ended June 30, 2026.

 

Intangible Assets

 

Intangible assets consist of trade name, developed technology, legal and compliance framework, and patents, and are initially recorded at fair value. Long-lived intangible assets are amortized over their estimated useful lives in a method reflecting the pattern in which the economic benefits are consumed or amortized on a straight-line basis if such pattern cannot be reliably determined. The Company evaluates its finite-lived intangible assets for impairment under the held-and-used impairment model whenever events or changes in circumstances indicate that the carrying amount of an asset group may not be recoverable. During the three and six months ended June 30, 2026, the Company evaluated whether events or changes in circumstances indicated that the carrying amount of its intangible asset group may not be recoverable, including the Company’s operating losses, the extent and manner of use of the acquired platform assets, changes in the business and regulatory climate applicable to tokenized products, and market conditions. Based on the totality of that assessment, management concluded that no impairment indicators were present as of June 30, 2026 and accordingly no impairment charge was recorded for the three and six months ended June 30, 2026 or 2025.

 

The following summarizes the Company’s intangible assets as of June 30, 2026 and December 31, 2025:

  

   June 30,   December 31, 
   2026   2025 
Trade name (1)  $5,100   $5,100 
Developed technology (1)   40,000    40,000 
Legal and compliance framework (1)   2,400    2,400 
Patents   380    380 
Total   47,880    47,880 
Foreign currency translation adjustment   (1,291)   371 
Total accumulated amortization   (6,347)   (3,612)
Intangible assets, net  $40,242   $44,639 

 

  1) Intangible assets acquired in connection with the Streamex Exchange acquisition were initially measured in Canadian dollars and translated into U.S. dollars using the exchange rate in effect on the acquisition date. Subsequent changes in exchange rates are reflected in the carrying amounts presented above and recorded in other comprehensive loss as part of the cumulative translation adjustment.

 

Amortization expense for intangible assets was $1,466 and $539 for the three months ended June 30, 2026 and 2025, respectively, and $2,945 and $544 for the six months ended June 30, 2026 and 2025, respectively.

 

Expected future amortization expense of intangible assets as of June 30, 2026, is as follows:

  

      
Remainder 2026  $2,755 
2027   5,509 
2028   5,509 
2029   5,509 
2030   5,509 
Thereafter   15,451 
Total  $40,242