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Note 4 - Goodwill and Long-Lived Assets | 6 Months Ended
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Jun. 30, 2025
Notes to Financial Statements |
Goodwill and Intangible Assets Disclosure [Text Block] |
4. | Goodwill and Long-Lived Assets
The Company determined that a sustained decrease in its stock price that occurred during the three months ended March 31, 2025 indicated that the carrying values of its goodwill and other long-lived assets may not be recoverable. Additional factors that contributed to this conclusion are the Company’s recent operating results, liquidity risk and the current macroeconomic conditions impacting the life sciences industry. Based on this determination, the Company performed interim quantitative impairment tests on its goodwill and other long-lived assets as of March 31, 2025 and June 30, 2025. The recoverability of assets or an asset group to be held and used is measured by a comparison of the carrying amount of an asset or asset group to estimated undiscounted future cash flows expected to be generated by the asset or the asset group. Based on its recoverability assessment, the Company determined that there was no impairment of its other long-lived assets as of March 31, 2025 and June 30, 2025. For the purpose of its goodwill impairment analysis, the Company has one reporting unit. The Company estimated the fair value of the reporting unit using an income-based valuation approach by means of a discounted cash flow (“DCF”) model. Under this model, the fair value of the reporting unit is determined based on the present value of estimated future cash flows, discounted at a risk-adjusted rate of return. The Company used internal forecasts and strategic long-term plans to estimate future cash flows, including projections of revenue and EBITDA, capital expenditure and working capital requirements, terminal growth rates, statutory tax rates and a market-participant discount rate. The goodwill impairment analysis also includes a reconciliation of the aggregate estimated fair value of the reporting unit to the Company’s total market capitalization. Based on this quantitative impairment analysis as of March 31, 2025, the Company determined that the carrying value of the reporting unit exceeded its fair value by $48.0 million. Accordingly, the Company recorded such amount as a goodwill impairment charge for the three months ended March 31, 2025. Based on the impairment analysis performed as of June 30, 2025, an additional impairment charge was not required during the three months ended June 30,2025. The inputs and assumptions used in determining the fair value of the reporting unit are subjective and require management’s use of significant judgment. Certain future events and circumstances, including further deterioration of the Company’s stock price, operating results, and macroeconomic conditions, and a higher cost of capital, among others, could result in changes to these inputs and assumptions. A revision of these inputs and assumptions could cause the fair value of the reporting unit to fall further below its carrying value, resulting in additional impairment charges, which could have a material adverse effect on the Company’s results of operations. The change in the carrying amount of goodwill for the six months ended June 30, 2025 was as follows:
(in thousands) |  |  |  |
Carrying amount at December 31, 2024 |  | $ | 56,324 |
Goodwill impairment |  |  | (47,951 | )
Effect of change in currency translation |  |  | 1,779 |
Carrying amount at June 30, 2025 |  | $ | 10,152 |
Intangible assets, net at June 30, 2025 and December 31, 2024 consisted of the following:
|  | June 30, 2025 |  |  | December 31, 2024 |
(in thousands) |  |  |  |  |  | Accumulated |  |  |  |  |  |  |  |  |  |  | Accumulated |  |  |  |  |
Amortizable intangible assets: |  | Gross |  |  | Amortization |  |  | Net |  |  | Gross |  |  | Amortization |  |  | Net |
Customer relationships |  | $ | 16,313 |  |  | $ | (11,564 | ) |  | $ | 4,749 |  |  | $ | 15,603 |  |  | $ | (10,450 | ) |  | $ | 5,153 |
Technology and software development |  |  | 36,095 |  |  |  | (32,676 | ) |  |  | 3,419 |  |  |  | 35,397 |  |  |  | (30,556 | ) |  |  | 4,841 |
Trade names and patents |  |  | 7,706 |  |  |  | (6,953 | ) |  |  | 753 |  |  |  | 7,452 |  |  |  | (6,509 | ) |  |  | 943 |
Total amortizable intangible assets |  | $ | 60,114 |  |  | $ | (51,193 | ) |  | $ | 8,921 |  |  | $ | 58,452 |  |  | $ | (47,515 | ) |  | $ | 10,937 |
Indefinite-lived intangible assets: |  |  |  |  |  |  |  |  |  |  | 218 |  |  |  |  |  |  |  |  |  |  |  | 195 |
Total intangible assets |  |  |  |  |  |  |  |  |  | $ | 9,139 |  |  |  |  |  |  |  |  |  |  | $ | 11,132 |
Intangible asset amortization expense for the three and six months ended June 30, 2025 and 2024 was as follows:
|  | Three Months Ended June 30, |  |  | Six Months Ended June 30, |
(in thousands) |  | 2025 |  |  | 2024 |  |  | 2025 |  |  | 2024 |
Cost of revenues |  | $ | 43 |  |  | $ | 43 |  |  | $ | 87 |  |  | $ | 87 |
Operating expense |  |  | 1,162 |  |  |  | 1,331 |  |  |  | 2,322 |  |  |  | 2,664 |
Total amortization of intangible assets |  | $ | 1,205 |  |  | $ | 1,374 |  |  | $ | 2,409 |  |  | $ | 2,751 |
As of June 30, 2025, estimated future amortization expense of amortizable intangible assets is as follows:
(in thousands) |  |  |  |
2025 (remainder of year) |  | $ | 1,792 |
2026 |  |  | 2,857 |
2027 |  |  | 1,586 |
2028 |  |  | 1,339 |
2029 |  |  | 950 |
Thereafter |  |  | 397 |
Total |  | $ | 8,921 |

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