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Note 7 - Goodwill
 12 Months Ended
Dec. 31, 2024
Notes to Financial Statements  
Goodwill Disclosure [Text Block]

NOTE 7. GOODWILL

 

Goodwill is accounted for in accordance with ASC 350, Intangibles-Goodwill and Other. The Company does not amortize goodwill, but rather tests for impairment annually or more frequently if events or circumstances indicate that an asset may be impaired.

 

During the fourth quarter of 2023, the Company performed its annual goodwill impairment analysis following the steps laid out in ASC 350-20-35-3C. The Company’s impairment analysis included a qualitative assessment to determine if it is necessary to perform the quantitative impairment test. In performing a qualitative assessment, the Company reviewed events and circumstances that could affect the significant inputs used to determine if the fair value is less than the carrying value of goodwill. The Company performed a Step 0 goodwill impairment analysis and determined that the fair value of the reporting unit was more likely than not less than the carrying amount, which necessitated the Company performing the quantitative impairment test. After performing the quantitative impairment test in accordance with ASC 350-20-35-3C, the Company determined that goodwill related to its DERMAdoctor reporting unit was fully impaired during the year ended December 31, 2023. As such, the Company recorded a goodwill impairment charge in the year ended December 31, 2023, which is included in net loss from discontinued operations in the Company’s consolidated statements of operations. There was no such goodwill impairment recorded during the year ended December 31, 2024. The impairment information is discussed in Note 2, “Summary of Significant Accounting Policies.” On March 25, 2024, we closed the DERMAdoctor Divestiture. See additional information in Note 21, “DERMAdoctor Divestiture and Discontinued Operations.”

 

The following roll-forward presents the Company’s goodwill as of December 31, 2023 (in thousands):

 

   

Amount

  

Balance as of December 31, 2022

   $ 348  

Impairment

     348  

Balance as of December 31, 2023

   $ —