XML 29 R16.htm IDEA: XBRL DOCUMENT v3.26.1
GOODWILL AND INTANGIBLE ASSETS
 12 Months Ended
Dec. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL AND INTANGIBLE ASSETS

NOTE 7: GOODWILL AND INTANGIBLE ASSETS

 

Goodwill

 

The Company recorded goodwill from each of its business combinations. As part of its 2025 annual impairment testing, the Company recorded goodwill impairment charges of $3,185,056 ($1,081,000 for the Bailey reporting unit and $2,104,056 for the Stateside reporting unit). No goodwill impairment was recorded in 2024. The following is a summary of goodwill activity by entity for the years ended December 31, 2025 and 2024:

 

   December 31, 2024   Additions   Impairment   December 31, 2025 
Bailey  $3,158,123   $           -   $(1,081,000)  $2,077,123 
Stateside   2,104,056    -    (2,104,056)   - 
Sundry   3,711,322    -    -    3,711,322 
Goodwill  $8,973,501   $-   $(3,185,056)  $5,788,445 

 

Intangible Assets

 

For the year ended December 31, 2025, the Company recorded intangible asset impairment charges of $2,488,948, comprising: (i) $1,260,500 related to the Stateside brand name (indefinite-lived), reflecting the Company’s assessment that the carrying value exceeded the estimated fair value based on the reporting unit’s performance; and (ii) $1,228,448 related to the OpenDaily technology asset and associated intangible assets acquired in April 2025 pursuant to the asset acquisition of Open Daily Technologies, Inc., which were fully impaired based on a reassessment of recoverability. No intangible asset impairment was recorded in 2024, other than $1,388,000 related to HJ customer relationships. Total impairment charges (goodwill and intangible assets) for the year ended December 31, 2025 were $5,674,004.

 

The following table summarizes information relating to the Company’s identifiable intangible assets as of December 31, 2025 and 2024:

 

   Gross       Accumulated   Carrying 
December 31, 2025  Amount   Impairment   Amortization   Value 
Amortized:                
Customer relationships  $8,634,560   $-   $(8,634,560)  $- 
Technology asset   2,948,275    (1,228,448)   (418,336)   1,301,491 
   $11,582,835   $(1,228,448)  $(9,052,896)  $1,301,491 
Indefinite-lived:                    
Brand name   4,453,880    (1,260,500)   -    3,193,380 
Total  $16,036,715   $(2,488,948)  $(9,052,896)  $4,494,871 

 

   Gross       Accumulated   Carrying 
December 31, 2024  Amount   Impairment   Amortization   Value 
Amortized:                
Customer relationships   10,022,560    (1,388,000)   (6,968,401)   1,666,159 
   $10,022,560   $(1,388,000)  $(6,968,401)  $1,666,159 
Indefinite-lived:                    
Brand name   4,453,880    -    -    4,453,880 
Total  $14,476,440   $(1,388,000)  $(6,968,401)  $6,120,039 

 

Refer to Note 3 for discussion on the intangible asset impairment recorded in 2025.

 

The Company recorded amortization expense of $2,084,496 and $2,474,178 during the years ended December 31, 2025 and 2024, respectively, which is included in general and administrative expenses in the consolidated statements of operations.

 

The technology asset acquired from Open Daily Technologies Inc. (see Note 3) was placed in service during 2025 and is being amortized on a straight-line basis over its estimated useful life. Amortization expense is included in operating expenses.