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Note 7 - Goodwill
 9 Months Ended
Sep. 30, 2024
Notes to Financial Statements  
Goodwill and Intangible Assets Disclosure [Text Block]

NOTE 7 GOODWILL

 

The following table summarizes the goodwill activity for the nine months ended September 30, 2024:

 

(in thousands)

 

Extended Warranty

  

Kingsway Search Xcelerator

  

Corporate

  

Total

 

Balance, December 31, 2023

 $31,153  $18,473  $732  $50,358 

Acquisition

  —   6,117   —   6,117 

Measurement period adjustments

  —   412   —   412 

Balance, September 30, 2024

 $31,153  $25,002  $732  $56,887 

 

As further discussed in Note 5, "Acquisitions and Discontinued Operations," during the third quarter of 2024 the Company recorded goodwill of $6.1 million related to the acquisition of Image Solutions on September 26, 2024.  The goodwill related to this acquisition is provisional and subject to adjustment during the measurement period.  The Company expects to complete its purchase price allocation within the next six months.  The estimates, allocations and calculations recorded at September 30, 2024 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. 

 

As further discussed in Note 5, "Acquisitions and Discontinued Operations," during the second quarter of 2024, the Company recorded measurement period adjustments, related to acquisitions of SPI and DDI, that increased goodwill by $0.4 million.

 

Goodwill is assessed for impairment annually as of November 30, or more frequently if events or circumstances indicate that the carrying value may not be recoverable. Although the Company believes its estimates of fair value are reasonable, actual financial results could differ from those estimates due to the inherent uncertainty involved in making such estimates. Changes in assumptions concerning future financial results or other underlying assumptions could have a significant impact on either the fair value of the reporting units, the amount of the goodwill impairment charge, or both.  No goodwill impairment charges were recorded during the three and nine months ended September 30, 2024 and September 30, 2023.