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Note 7 - Goodwill
 3 Months Ended
Mar. 31, 2025
Notes to Financial Statements  
Goodwill and Intangible Assets Disclosure [Text Block]

NOTE 7 GOODWILL

 

The following table summarizes the goodwill activity for the three months ended March 31, 2025:

 

(in thousands)

 

Extended Warranty

  

Kingsway Search Xcelerator

  

Total

 

Balance, December 31, 2024

 $31,153  $25,371  $56,524 

Acquisition

  —   906   906 

Balance, March 31, 2025

 $31,153  $26,277  $57,430 

 

As further discussed in Note 5, "Acquisitions and Discontinued Operations," during the first quarter of 2025 the Company recorded goodwill of $0.9 million related to the acquisition of Bud's Plumbing on March 14, 2025.  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 March 31, 2025 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. 

 

At each of  March 31, 2025 and December 31, 2024, accumulated goodwill impairment losses were $0.7 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. In evaluating the recoverability of goodwill, the Company estimates the fair value of its reporting units and compares it to the carrying value.  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 months ended March 31, 2025 and March 31, 2024.