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Note 10 - Goodwill and Intangible Assets

9 Months Ended

Sep. 30, 2025

Goodwill and Intangible Assets Disclosure [Text Block]

Note 10 - Goodwill and Intangible Assets

Goodwill

Annual impairment test

During the third quarter of 2025, 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 fair value of each reporting unit exceeded its carrying value and our goodwill was not impaired.

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

(in thousands)
Goodwill balance at December 31, 2024	$	1,633
Impairment charge during 2025		-
Goodwill balance at September 30, 2025	$	1,633

Goodwill before impairment	$	6,428
Accumulated impairment charge		(4,795	)
Goodwill balance at September 30, 2025	$	1,633

Indefinite-lived intangible assets

Annual impairment test

During the third quarter of 2025, we completed our annual review of indefinite-lived intangible assets for potential impairment using a quantitative assessment for all of our reporting units. The fair value of each asset was estimated using a weighting of a discounted cash flow model and prices of comparable businesses. As a result of this review, we concluded the carrying value of the MRI trade name exceeded its estimated fair value resulting in an impairment charge of $230 thousand which is reported on the line item "Goodwill and intangible asset impairment charge" on our Consolidated Statement of Operations.

The following table reflects our indefinite-lived intangible assets:

	*September 30, 2025*							*December 31, 2024*
(in thousands)	*Gross*		*Accumulated impairment*			*Net*		*Gross*		*Accumulated impairment*			*Net*
Domain name		2,226		-			2,226		2,226		-			2,226
Trade name		3,580		(1,470	)		2,110		3,580		(1,240	)		2,340
Total indefinite-lived intangible assets	$	5,806	$	(1,470	)	$	4,336	$	5,806	$	(1,240	)	$	4,566

Finite-lived intangible assets

During the third quarter of 2025, we conducted a review of our finite-lived intangible assets for any indications of impairment. Also as part of this review we evaluated the estimated remaining useful life of the assets. As a result of this evaluation we revised the estimated useful life of the MRI franchise agreements from 15 years to 8 remaining years. This change in the estimated useful life will increase annual amortization expense by approximately $202 thousand. The related revision to the estimated remaining useful life is primarily attributable to industry and market conditions effecting the overall financial performance of the franchise base.

The following table reflects our finite-lived intangible assets:

		September 30, 2025							December 31, 2024
(in thousands except useful life)	Estimated useful life	Gross		Accumulated amortization			Net		Gross		Accumulated amortization			Net
Franchise agreements	8 to 15 years	$	25,556	$	(7,114	)	$	18,442	$	25,556	$	(5,819	)	$	19,737
Purchased software	7 years		3,200		(1,829	)		1,371		3,200		(1,486	)		1,714
Internally developed software	5 years		3,125		(1,432	)		1,693		3,125		(963	)		2,162
Total finite-lived intangible assets		$	31,881	$	(10,375	)	$	21,506	$	31,881	$	(8,268	)	$	23,613

Amortization expense related to intangible assets totaled approximately $713 thousand and $656 thousand for the three months ended September 30, 2025 and September 30, 2024, respectively, and approximately $2.1million and $2.0 million for the nine months ended September 30, 2025 and September 30, 2024, respectively,