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Intangible and Other Assets
 12 Months Ended
Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible and Other Assets

Note 6 – Intangible and Other Assets

 

The following table summarizes our intangible assets as of:

 

   December 31,   December 31,   Estimated 
   2024   2023   Useful Life 
Intangible assets subject to amortization (in thousands):               
Tradenames and trademarks  $818   $417    2.5  - 8.0 years 
Accreditations   -    75    5.0 years 
Customer relationships   3,470    3,937    3.0 - 15.0 years 
Patents   -    970    4.0 years 
Non-compete agreements   -    121    5.0 years 
Intangible assets subject to amortization, gross   4,288    5,520      
Less accumulated amortization   2,497    3,821      
Intangible assets subject to amortization, net   1,791    1,699      
Tradenames/trademarks (not subject to amortization)   -    465      
Intangible assets   1,791    2,164      
Other assets   19    23      
Intangible and other assets:  $1,810   $2,187      

 

 

Where Food Comes From, Inc.

Notes to the Consolidated Financial Statements

 

In December 2023, the Company acquired the Upcycled Certified® Program from the Upcycled Food Association. Assets acquired included intellectual property, trademarks and a customer list for $0.3 million. The upcycled food movement is closely aligned with broader sustainability trends in the United States and around the world. This acquisition enables the company to meet growing consumer demand for products that contain upcycled food ingredients and be part of the food waste solution.

 

Management performs an annual review of the Company’s intangible assets to ensure fully depreciated assets, which are no longer in use, are removed from the Company’s records. For the years ended December 31, 2024 and 2023, the Company wrote off approximately $1.7 million and $0, respectively, in fully depreciated intangible assets. The write-off had no impact on the Company’s Consolidated Statements of Income.

 

During 2024, management reviewed our tradenames / trademarks (not subject to amortization) and determined the tradename no longer had an infinite life and as such, needed to be reclassified to tradename / trademarks subject to amortization and amortized over the remaining useful life.

 

We reviewed our long-lived assets for indicators of impairment in 2024 and 2023 and concluded in each year that no impairments exist.

 

Amortization expense for each of the years ended December 31, 2024 and 2023 was approximately $0.4 million and $0.3 million, respectively.

 

As of December 31, 2024, future scheduled amortization of intangible assets is as follows (in thousands):

 

    2024 
Fiscal year ending December 31:
     
2025  $391 
2026   354 
2027   308 
2028   271 
2029   205 
Thereafter   262 
Intangible and other assets, net   $1,791