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Note 5 - Goodwill and Intangible Assets | 3 Months Ended
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Jun. 30, 2024
Notes to Financial Statements |
Goodwill and Intangible Assets Disclosure [Text Block] | Note 5 — Goodwill and Intangible Assets Goodwill The Company currently has three reporting units. The following table presents the changes in the carrying amount of goodwill for the three months ended June 30, 2024 (in thousands):
|  | Goodwill |
Balance as of March 31, 2024 |  | $ | 23,379 |
Acquisitions |  |  | - |
Impairment losses |  |  | - |
Balance as of June 30, 2024 |  | $ | 23,379 |
Indefinite-Lived Intangible Assets The following table presents the changes in the carrying amount of indefinite-lived brand and trade names intangible assets in the Company’s Audio Group segment for the three months ended June 30, 2024 (in thousands):
|  | Tradenames |
Balance as of March 31, 2024 |  | $ | 4,637 |
Acquisitions |  |  | - |
Impairment losses |  |  | - |
Balance as of June 30, 2024 |  | $ | 4,637 |
Finite-Lived Intangible Assets The Company’s finite-lived intangible assets were as follows as of June 30, 2024 (in thousands):
|  | Gross |  |  |  |  |  |  | Net |
|  | Carrying |  |  | Accumulated |  |  | Carrying |
|  | Value |  |  | Amortization |  |  | Value |
Software |  | $ | 19,281 |  |  | $ | 19,281 |  |  | $ | - |
Intellectual property (patents) |  |  | 5,366 |  |  |  | 2,325 |  |  |  | 3,041 |
Customer relationships |  |  | 6,570 |  |  |  | 6,570 |  |  |  | - |
Content creator relationships |  |  | 3,787 |  |  |  | 1,920 |  |  |  | 1,867 |
Domain names |  |  | 523 |  |  |  | 202 |  |  |  | 321 |
Brand and trade names |  |  | 1,071 |  |  |  | 465 |  |  |  | 606 |
Customer list |  |  | 2,673 |  |  |  | 1,617 |  |  |  | 1,056 |
Total |  | $ | 39,271 |  |  | $ | 32,380 |  |  | $ | 6,891 |
The Company’s finite-lived intangible assets were as follows as of March 31, 2024 (in thousands):
|  | Gross |  |  |  |  |  |  | Net |
|  | Carrying |  |  | Accumulated |  |  | Carrying |
|  | Value |  |  | Amortization |  |  | Value |
Software |  | $ | 19,281 |  |  | $ | 19,281 |  |  | $ | - |
Intellectual property (patents) |  |  | 5,366 |  |  |  | 2,236 |  |  |  | 3,130 |
Customer relationships |  |  | 6,570 |  |  |  | 6,570 |  |  |  | - |
Content creator relationships |  |  | 4,082 |  |  |  | 1,568 |  |  |  | 2,514 |
Domain names |  |  | 523 |  |  |  | 190 |  |  |  | 333 |
Brand and trade names |  |  | 1,071 |  |  |  | 439 |  |  |  | 632 |
Customer list |  |  | 2,673 |  |  |  | 1,504 |  |  |  | 1,169 |
Total |  | $ | 39,566 |  |  | $ | 31,788 |  |  | $ | 7,778 |
Intangible assets are amortized over their estimated useful lives based on the pattern in which the economic benefits associated with the asset are expected to be consumed, which to date has approximated the straight-line method of amortization. The estimated useful lives for patents, content creator relationships, domain names, tradename and customer list are generally three to 15 years, one to two years, two to five years, seven to ten years and three to four years, respectively. The Company’s amortization expense on its finite-lived intangible assets was $0.6 million and $0.2 million for the three months ended June 30, 2024 and 2023, respectively. The Company recorded an impairment charge of $0.2 million and none for the three months ended June 30, 2024 and 2023, respectively. The impairment for the three months ended June 30, 2024 was the result of the winding down of a podcast show acquired by PodcastOne. Finder's Agreement In September 2023, PodcastOne entered into a finder's fee arrangement pursuant to which it agreed to issue shares of PodcastOne common stock at a price of $8.00 per share (subject to adjustment in certain limited circumstances) as a finder’s fee to a certain third party podcast platform in the event certain former and/or current podcasts creators of such platform entered into new podcasting agreements with PodcastOne, with the amount of the fee to be based on the amount of revenues actually derived by PodcastOne from such podcasts during a predetermined period. Payments made to such third party attributed to PodcastOne entering into new podcast contracts were capitalized to content creator relationship intangibles. As of June 30, 2024 and March 31, 2024, the Company has capitalized $3.2 million of payments made to such third party. $1.8 million of the $3.2 million capitalized of payments made to such third party was paid with PodcastOne common stock. The Company expects to record amortization of intangible assets for fiscal years ending March 31, 2025 and future fiscal years as follows (in thousands):
For Years Ending March 31, |  |  |  |
2025 (remaining nine months) |  | $ | 1,536 |
2026 |  |  | 1,762 |
2027 |  |  | 1,023 |
2028 |  |  | 508 |
2029 |  |  | 508 |
Thereafter |  |  | 1,554 |
|  | $ | 6,891 |

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