Goodwill and Intangible Assets, Net

6 Months Ended

Jun. 30, 2025

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND INTANGIBLE ASSETS, NET

As of both June 30, 2025 and December 31, 2024, goodwill was $51.9 million. We have selected June 30 as our annual goodwill impairment testing date. We performed a qualitative impairment test of our goodwill and concluded that, as of June 30, 2025, it was more likely than not that the fair value exceeded the carrying value and, therefore, goodwill was not impaired. As of June 30, 2025 and December 31, 2024, there were no indicators of impairment.

In June 2021, in connection with our marketing initiatives, we purchased the naming rights to the downtown Oklahoma City arena that is currently home to the Oklahoma City Thunder National Basketball Association franchise. Under the terms of the naming rights agreement, we committed to make escalating annual sponsorship fee payments from 2021 to 2035. As described in Note 15 “Subsequent Events,” we amended certain terms of the naming rights agreement in July 2025, resulting in, among other things, a reduction in the remaining term of the agreement. The cost of the naming rights has been recorded as an intangible asset with an offsetting liability as of the date of the contract. The intangible asset is being amortized over the life of the agreement on a straight-line basis that commenced in June 2021. The difference between the present value of the offsetting liability and actual cash payments is being relieved through sales and marketing expense using the effective interest method over the life of the agreement.

All of our intangible assets other than goodwill are considered to have definite lives and, as such, are subject to amortization. The following tables present the components of intangible assets within our consolidated balance sheets:


	June 30, 2025
			Accumulated
	Gross		Amortization			Net
Intangibles:
Naming rights	$	60.2	$	(15.9	)	$	44.3
Total	$	60.2	$	(15.9	)	$	44.3


	December 31, 2024
			Accumulated
	Gross		Amortization			Net
Intangibles:
Naming rights	$	60.2	$	(14.0	)	$	46.2
Total	$	60.2	$	(14.0	)	$	46.2

Amortization of intangible assets for the three and six months ended June 30, 2025 and 2024 was $1.0 million and $2.0 million, respectively. As stated above, the Company amended its naming rights agreement in July 2025. As a result, future amortization expense and the weighted average remaining useful life as of the balance sheet date are no longer an accurate reflection of the expected pattern of recognition of expense. Please see Note 15 “Subsequent Events” for more information on the amended terms of the agreement.