Note 6 - Goodwill and Intangible Assets

12 Months Ended

Mar. 31, 2024

Notes to Financial Statements

Goodwill and Intangible Assets Disclosure [Text Block]

Note 6 — 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 years ended March 31, 2024 and 2023 (in thousands):

	Goodwill
Balance as of April 1, 2022	$	23,379
Acquisitions		-
Balance as of March 31, 2023	$	23,379
Acquisitions		-
Balance as of March 31, 2024	$	23,379

Indefinite-Lived Intangible Assets

The following table presents the changes in the carrying amount of indefinite-lived intangible assets in the Company’s reportable segment for the year ended March 31, 2024 (in thousands):

	Tradenames
Balance as of April 1, 2022	$	4,637
Acquisitions		-
Impairment losses		-
Balance as of March 31, 2023	$	4,637
Acquisitions		-
Impairment losses		-
Balance as of March 31, 2024	$	4,637

Finite-Lived Intangible Assets

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

The Company’s finite-lived intangible assets were as follows as of March 31, 2023 (in thousands):

	Gross				Net
	Carrying		Accumulated		Carrying
	Value		Amortization		Value
Software	$	19,281	$	19,281	$	-
Intellectual property (patents)		5,366		1,878		3,488
Customer relationships		6,570		6,570		-
Content creator relationships		772		772		-
Domain names		523		137		386
Brand and trade names		1,143		347		796
Customer list		2,767		1,039		1,728
Total	$	36,422	$	30,024	$	6,398

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 $1.8 million and $4.3 million for the years ended March 31, 2024 and 2023, respectively. The Company recorded an impairment charge of $0.1 million and $1.4 million for the year ended March 31, 2024 and 2023, respectively. The impairment for the year ended March 31, 2024 was the result of the impairment of certain assets within our Media Group. The impairment for the year ended March 31, 2023 was the result of a reduction in the events held within React Presents, therefore the Company has stopped marketing the brand name.

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 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 and the remaining was paid for in cash or accrued.

The Company estimated future amortization expense on its finite-lived intangible assets as of March 31, 2024 to be as follows (in thousands): 

For Years Ended March 31,
2025	$	2,275
2026		1,910
2027		1,023
2028		508
2029		508
Thereafter		1,554
	$	7,778