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Note 8 - Intangible Assets
 3 Months Ended
Mar. 31, 2024
Notes to Financial Statements  
Intangible Assets Disclosure [Text Block]

NOTE 8 INTANGIBLE ASSETS

 

Intangible assets at March 31, 2024 and December 31, 2023 are comprised as follows:

 

(in thousands)

 

March 31, 2024

 
  

Gross Carrying Value

  

Accumulated Amortization

  

Accumulated Impairment Losses

  

Net Carrying Value

 

Intangible assets subject to amortization:

                

Database

 $4,918  $4,918  $—  $— 

Vehicle service agreements in-force

  3,680   3,680   —   — 

Customer relationships

  39,942   20,920   —   19,022 

Developed technology

  600   34   —   566 

Intangible assets not subject to amortization:

                

Trade names

  14,667   —   511   14,156 

Total

 $63,807  $29,552  $511  $33,744 

(in thousands)

 

December 31, 2023

 
  

Gross Carrying Value

  

Accumulated Amortization

  

Net Carrying Value

 

Intangible assets subject to amortization:

            

Database

 $4,918  $4,918  $— 

Vehicle service agreements in-force

  3,680   3,680   — 

Customer relationships

  39,942   19,521   20,421 

Developed technology

  600   18   582 

Intangible assets not subject to amortization:

            

Trade names

  14,667   —   14,667 

Total

 $63,807  $28,137  $35,670 

 

The Company's other 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 7 to 15 years. Amortization of intangible assets was $1.4 million for each of the three months ended March 31, 2024 and March 31, 2023, respectively.

 

The trade names 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 March 31, 2024, the Company determined that certain trade names should be further examined under a quantitative approach.  Based upon this assessment, the Company recorded an impairment charge of $0.5 million related to the SNS and CSuite indefinite-lived trade names.  The fair value of the SNS and CSuite trade names was 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 reduction in projected revenue.  No impairment charges were recorded during the three months ended  March 31, 2023.