NOTE 8 INTANGIBLE ASSETS

Intangible assets at September 30, 2026 and December 31, 2025 were comprised as follows:

As further discussed in Note 5, "Acquisitions and Disposal," during the third quarter of 2026, the Company recorded intangible assets related to customer relationships and trade name related to the acquisition of RCC. The Company expects to complete its purchase price allocation within the next nine months. The estimates, allocations and calculations recorded at September 30, 2026 are subject to change as we obtain further information; therefore, the final fair values of the assets acquired and liabilities assumed may not agree with the estimates included in these consolidated financial statements. Additionally, during the nine months ended September 30, 2026, the Company acquired intangible assets related to customer relationships and trade name related to a small acquisition.  

As discussed in Note 5,"Acquisitions and Disposal," the Company disposed of Trinity on May 8, 2026.  

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 $2.0 million and $2.4 million for the three months ended September 30, 2026 and September 30, 2025, respectively ($6.3 million and $5.8 million for the nine months ended September 30, 2026 and September 30, 2025, respectively).

The trade name 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 through third 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 as follows:

The trade name fair values 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.