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Goodwill and Intangible Assets

9 Months Ended

Sep. 30, 2025

3.Goodwill and Intangible Assets

Goodwill

As of September 30, 2025, the Company performed its annual goodwill impairment analysis on one of its reporting units, the Agility segment. It involved a quantitative goodwill impairment test and estimated the fair value based on a combination of the income approach (estimates of future discounted cash flows) and the market approach (market multiples for similar companies) using unobservable inputs (Level 3). The income approach uses a discounted cash flow (“DCF”) method that utilizes the present value of cash flows to estimate the segment’s fair value. The future cash flows of the segment were projected based on the Company’s estimates of future revenues, operating income, and other factors such as working capital and capital expenditures. As part of the DCF analysis, the Company projected revenue and operating profits and assumed long - term revenue growth rates in the terminal year. The market approach utilizes multiples of revenues and earnings before interest expense, taxes, depreciation, and amortization (“EBITDA”) to estimate the segment’s fair value. The market multiples used for the segment were based on a group of comparable companies’ market multiples applied to the Company’s revenue. The Company concluded that there is no impairment of goodwill.

The change in the carrying amount of goodwill for the nine months ended September 30, 2025 was as follows (in thousands):


Balance - January 1, 2025	$	1,998
Foreign currency translation adjustment		69
Balance - September 30, 2025	$	2,067

The fair value measurement of goodwill of the Agility segment was conducted on September 30, 2025 and was classified within Level 3 of the fair value hierarchy because the Company used the income approach, which utilizes significant inputs that are unobservable in the market and the market multiple approach using comparable entities to further validate the carrying values. The Company believes it made reasonable estimates and assumptions to calculate the fair value of the reporting unit as of the impairment test measurement date. The carrying value of Goodwill was $2.1 million and $2.0 million for the periods ended September 30, 2025 and December 31, 2024.

Intangibles

Information regarding the Company acquired intangible assets and capitalized developed software was as follows (in thousands):


	September 30, 2025
	Gross				Foreign Currency		Net
	Carrying		Accumulated		Translation		Carrying
	Value		Amortization		Adjustment		Value
Acquired Intangible Assets
Developed technology	$	2,881	$	(2,810)	$	3	$	74
Customer relationships		1,965		(1,832)		8		141
Trademarks and tradenames		840		(828)		1		13
Patents		40		(40)		-		-
Media Contact Database		3,528		(3,268)		16		276
Total Acquired Intangible Assets	$	9,254	$	(8,778)	$	28	$	504

Capitalized Developed Software
Capitalized Developed Software	$	22,493	$	(12,849)	$	177	$	9,821
Capitalized Developed Software - in Progress		3,553		-		7		3,560
Total Capitalized Developed Software	$	26,046	$	(12,849)	$	184	$	13,381

Total	$	35,300	$	(21,627)	$	212	$	13,885


	December 31, 2024
	Gross				Foreign Currency		Net
	Carrying		Accumulated		Translation		Carrying
	Value		Amortization		Adjustment		Value
Acquired Intangible Assets
Developed technology	$	3,060	$	(2,911)	$	(3)	$	146
Customer relationships		2,144		(1,856)		(29)		259
Trademarks and tradenames		862		(826)		-		36
Patents		44		(44)		-		-
Media Contact Database		3,546		(3,016)		(1)		529
Total Acquired Intangible Assets	$	9,656	$	(8,653)	$	(33)	$	970

Capitalized Developed Software
Capitalized Developed Software	$	19,811	$	(10,507)	$	(463)	$	8,841
Capitalized Developed Software - in Progress		3,552		-		(10)		3,542
Total Capitalized Developed Software	$	23,363	$	(10,507)	$	(473)	$	12,383

Total	$	33,019	$	(19,160)	$	(506)	$	13,353

Amortization expense relating to acquired intangible assets was $0.2 million for each of the three-month periods ended September 30, 2025 and 2024. Amortization expense relating to acquired intangible assets was $0.6 million for each of the nine-month periods ended September 30, 2025 and 2024.

Amortization expense relating to capitalized developed software was $1.0 million for each of the three-month periods ended September 30, 2025 and 2024. Amortization expense relating to capitalized developed software was $2.9 million and $2.5 million for the nine months ended September 30, 2025 and 2024, respectively.

As of September 30, 2025, estimated future amortization expense for intangible assets was as follows (in thousands):


Year	Amortization
Remaining for 2025	$	1,575
2026		5,359
2027		3,895
2028		2,298
2029		516
Thereafter		242
	$	13,885