Goodwill and Other Intangible Assets

12 Months Ended

Jun. 30, 2026

Goodwill and Other Intangible Assets

9. Goodwill and Other Intangible Assets.

The following table summarizes the changes in goodwill:


Balance as of December 31, 2024	$	10,705,000
Measurement period adjustment		145,000
Other - Foreign currency translation		278,000
Balance as of June 30, 2025	$	11,128,000
Goodwill impairment		(11,122,000)
Other - Foreign currency translation		(6,000)
Balance as of June 30, 2026	$	—

The Company performed its annual impairment test on a quantitative basis as of April 30, 2026. The fair value of the reporting unit was estimated by a third-party valuation specialist using an income approach based on discounted cash flows. Based on the assessment, the Company determined that the carrying value of the reporting unit exceeded its estimated fair value. Accordingly, the Company recognized a non-cash goodwill impairment charge of $11,122,000 during the fourth quarter of the fiscal year-ended June 30, 2026, representing a full write-down of the goodwill. The charge is recorded in goodwill impairment in the consolidated statements of operations.

Other intangible assets and related amortization and impairment are as follows:


							June 30, 2026									June 30, 2025
		Carrying			Useful Life		Accumulated			Accumulated			Net Carrying			Accumulated			Net Carrying
		Amount			(Years)		Amortization			Impairment			Amount			Amortization			Amount
Tradename		$	8,570,000		Indefinite		$	—		$	2,043,000		$	6,527,000		$	—		$	8,570,000
Customer relationships			18,300,000		12			3,589,000			—			14,711,000			2,064,000			16,236,000
		$	26,870,000				$	3,589,000		$	2,043,000		$	21,238,000		$	2,064,000		$	24,806,000

During the year ended June 30, 2026, the Company performed an impairment assessment of its indefinite-lived intangible assets. The fair value of the intangibles were estimated by a third-party valuation specialist using the relief from royalty method. Based on the assessment, the Company determined that the carrying value of the Bloomia trade name exceeded its estimated fair value. Accordingly, the Company recognized a non-cash intangibles impairment charge of $2,043,000 during the fourth quarter of the fiscal year ended June 30, 2026. The charge is recorded in intangible asset impairment in the consolidated statements of operations.

For the year ended June 30, 2026, six months ended June 30, 2025, and year ended December 31, 2024, amortization of intangible assets expensed to operations was $1,525,000, $762,000, and $1,302,000, respectively. The weighted average remaining amortization period for intangible assets as of June 30, 2026 and June 30, 2025 was approximately 9.6 years and 10.6 years, respectively.

Remaining estimated aggregate annual amortization expense is as follows for the fiscal years ended June 30:



2027		$	1,525,000
2028			1,525,000
2029			1,525,000
2030			1,525,000
2031			1,525,000
Thereafter			7,086,000
Total		$	14,711,000