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Note 8 - Intangible Assets | 12 Months Ended
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Dec. 31, 2025
Notes to Financial Statements |
Goodwill and Intangible Assets Disclosure [Text Block] | NOTE 8 – INTANGIBLE ASSETS Goodwill There were no changes to goodwill during the year ended December 31, 2025. The following summarizes the change in goodwill from December 31, 2023 to December 31, 2025 (in thousands):
|  | December 31, 2023 |  |  | ATD Acquisition |  |  | Impairment |  |  | December 31, 2024 |  |  | Impairment |  |  | December 31, 2025 |
Goodwill |  | $ | 20,593 |  |  | $ | 3,720 |  |  | $ | - |  |  | $ | 24,313 |  |  | $ | - |  |  | $ | 24,313 |
Intangible Assets Subject to Amortization The following summarizes the changes in intangible assets, net of accumulated amortization and impairment, from December 31, 2023 to December 31, 2025 (dollars in thousands):
|  | December 31, 2023 |  |  | Additions |  |  | Amortization |  |  | Impairment |  |  | December 31, 2024 |  |  | Additions |  |  | Amortization |  |  | Impairment |  |  | December 31, 2025 |
Intangible assets subject to amortization |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Customer relationships |  | $ | 3,321 |  |  | $ | 11,900 |  |  | $ | (1,054 | ) |  | $ | (227 | ) |  | $ | 13,940 |  |  | $ | - |  |  | $ | (1,020 | ) |  | $ | - |  |  | $ | 12,920 |
Marketing related |  |  | 499 |  |  |  | 200 |  |  |  | (189 | ) |  |  | - |  |  |  | 510 |  |  |  | - |  |  |  | (180 | ) |  |  | - |  |  |  | 330 |
Technology based |  |  | 13,419 |  |  |  | - |  |  |  | (3,432 | ) |  |  | (9,987 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Intangible assets subject to amortization |  | $ | 17,239 |  |  | $ | 12,100 |  |  | $ | (4,675 | ) |  | $ | (10,214 | ) |  | $ | 14,450 |  |  | $ | - |  |  | $ | (1,200 | ) |  | $ | - |  |  | $ | 13,250 |
During the fourth quarter of 2024, as a result of sales performance being below expectation in part due to slower customer adoption, longer sales cycles and market conditions, the Company identified a triggering event and performed an analysis of its intangible assets. As a result of the forementioned factors and their potential future impact, the Company recognized an impairment charge of $10,214,000 as of December 31, 2024. The impairment charges were recorded in operating expenses in the consolidated statement of operations. No impairment charges were recognized during 2025. The estimates of future cash flows used in determining the fair value of intangible assets involve significant management judgment and are based upon assumptions about expected future operating performance, economic conditions, market conditions and cost of capital. Inherent in estimating the future cash flows are uncertainties beyond our control, such as changes in capital markets. The actual cash flows could differ materially from management’s estimates due to changes in business conditions, operating performance and economic conditions. The following provides a breakdown of identifiable intangible assets as of December 31, 2025 and 2024 (dollars in thousands):
|  | December 31, |
|  | 2025 |  |  | 2024 |
Customer relationships |  | $ | 15,300 |  |  | $ | 15,300 |
Marketing related |  |  | 900 |  |  |  | 900 |
Total |  |  | 16,200 |  |  |  | 16,200 |
Less: accumulated amortization |  |  | (2,950 | ) |  |  | (1,750 | )
Identifiable intangible assets, net |  | $ | 13,250 |  |  | $ | 14,450 |
These intangible assets are being amortized on a straight-line basis over their weighted average remaining estimated useful life of 12.4 years. Amortization expense for the year ended December 31, 2025 and 2024 was $1,200,000 and $4,675,000, respectively, and is presented as part of depreciation and amortization in the accompanying consolidated statements of operations. As of December 31, 2025, the estimated annual amortization expense for each of the next five fiscal years and thereafter is as follows (dollars in thousands):
2026 |  | $ | 1,200 |
2027 |  |  | 1,130 |
2028 |  |  | 1,060 |
2029 |  |  | 1,020 |
2030 |  |  | 1,020 |
Thereafter |  |  | 7,820 |
Total |  | $ | 13,250 |

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