GOODWILL AND INTANGIBLE ASSETS, NET

12 Months Ended

Dec. 31, 2025

Goodwill and Intangible Assets Disclosure [Abstract]

Identifiable intangible assets

The following tables set forth the components of intangible assets as of December 31, 2025 and 2024:


	Estimated Useful Life	As of December 31, 2025
		Adjusted Carrying Amount		Accumulated Amortization		Net

Patents and copyrights	2-17 years	$	375	$	(351)	$	24
Developed technology	5 years	400		(400)		—
Software development	5 years	2,667		(614)		2,053
		$	3,442	$	(1,365)	$	2,077


	Estimated Useful Life	As of December 31, 2024
		Adjusted Carrying Amount		Accumulated Amortization		Net

Patents and copyrights	2-17 years	$	375	$	(325)	$	50
Developed technology	5 years	400		(387)		13
Software development	5 years	2,455		(144)		2,311
		$	3,230	$	(856)	$	2,374

The following summarizes amortization of intangible assets included in the Statements of Operations:


	Years Ended December 31,
	2025		2024

Cost of revenues	$	499	$	181
Selling, general and administrative	10		10
Research and development	—		58
	$	509	$	249

The Company's estimated future amortization expense for intangible assets as of December 31, 2025 was as follows:


2026	$	549
2027	539
2028	533
2029	389
2030	67
	$	2,077

These amounts are subject to change based upon the review of recoverability and useful lives that are performed at least annually.

Goodwill

Goodwill represents the excess of purchase price over the fair value of the assets acquired in businesses combinations. Under ASC 350, goodwill is not amortized, but rather is tested for impairment. The Company’s goodwill balance was $8,102 as of December 31, 2025 and 2024. This goodwill resulted from the acquisitions of Mobilisa, Inc. and Positive Access Corporation.

For the years ended December 31, 2025 and 2024, the Company performed its annual impairment test of goodwill in the fourth quarter. Under authoritative guidance, the Company can use industry and Company specific qualitative factors to determine whether it is more likely than not that impairment exists before performing step one of the quantitative goodwill impairment test. An entity is not required to calculate the fair value of a reporting unit unless the entity determines, based on a qualitative assessment, that it is more likely than not that its fair value is less than its carrying amount. Events or changes in circumstances which could trigger an impairment review include macroeconomic conditions, industry and market conditions, cost factors, overall financial performance, other entity specific events and sustained decrease in share price.

According to ASC 350-20, the Company conducted a qualitative assessment (Step 0) to evaluate goodwill for impairment for the years ended December 31, 2025 and 2024. In the qualitative assessment for the fiscal years ended December 31, 2025 and 2024, the Company found no significant events or circumstances indicating a decline in the value of goodwill. As a result, the fair value of the reporting unit remained above its carrying value as of December 31, 2025 and 2024, and the Company did not proceed with a quantitative assessment for either year.