XML 36 R20.htm IDEA: XBRL DOCUMENT

Note 11 - Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2024

Goodwill and Intangible Assets Disclosure [Text Block]

Note 11 – Goodwill and Intangible Assets

Annual Impairment Test

During the third quarter of 2024, we completed our annual review of goodwill for potential impairment using a quantitative assessment for all of our reporting units. The fair value of each reporting unit was estimated using a weighting of a discounted cash flow model and prices of comparable businesses. As a result of this review, we concluded that the carrying value of our MRI reporting unit exceeded its estimated fair value resulting in an impairment charge of approximately $4.8 million. The goodwill impairment was primarily attributable to industry and market conditions effecting the overall financial performance of the reporting unit. These industry and market conditions were deemed a triggering event that led us to also review the fair value of certain indefinite-lived intangible assets related to the MRI reporting unit. As a result of this review we concluded the carrying value of the trade name related to MRI exceeded its estimated fair value resulting in an impairment charge of approximately $1.2 million. The related impairment was primarily attributable to industry and market conditions effecting the overall financial performance of the reporting unit. The balance for the trade name related to MRI was approximately $940 thousand and $2.2 million at December 31, 2024 and December 31, 2023, respectively.

The combined impairment charge of approximately $6.0 million is reflected in the line item, "Goodwill and intangible asset impairment charge," in our Consolidated Statements of Income for the twelve months ended December 31, 2024.

The table below reflects our goodwill and changes in the carrying value (in thousands):

Goodwill balance at December 31, 2023	$	5,870
Goodwill recorded in acquisition of RTS		558
Impairment charge during 2024		(4,795	)
Goodwill balance at December 31, 2024	$	1,633

Goodwill before impairment	$	6,428
Accumulated impairment charge		(4,795	)
Goodwill balance at December 31, 2024	$	1,633

Intangible Assets

The following table reflects our intangible assets:

		*December 31, 2024*							*December 31, 2023*
(in thousands except useful life)	*Estimated useful life*		*Gross*		*Accumulated amortization and impairment*			*Net*		*Gross*		*Accumulated amortization*			*Net*
Finite-lived intangible assets:
Franchise agreements	15 years	$	25,556	$	(5,819	)	$	19,737	$	25,556	$	(4,116	)	$	21,440
Purchased software	7 years		3,200		(1,486	)	$	1,714		3,200		(1,029	)		2,171
Internally developed software	5 years		3,125		(963	)	$	2,162		2,683		(498	)		2,185
Total finite-lived intangible assets		$	31,881	$	(8,268	)	$	23,613	$	31,439	$	(5,643	)	$	25,796
Indefinite-lived intangible assets:
Domain name	Indefinite	$	2,226	$	-		$	2,226	$	2,226	$	-		$	2,226
Trade name	Indefinite		3,580		(1,240	)	$	2,340		3,580		-			3,580
Total intangible assets		$	37,687	$	(9,508	)	$	28,179	$	37,245	$	(5,643	)	$	31,602

Amortization expense related to intangible assets totaled approximately $2.6 million during the years ended December 31, 2024 and December 31, 2023.

The following table provides the estimated future amortization of finite-lived intangible assets as of December 31, 2024 (in thousands):

2025	$	2,786
2026		2,786
2027		2,747
2028		2,207
2029		1,864
Thereafter		11,223
Total future amortization	$	23,613