NOTE 5: GOODWILL AND OTHER INTANGIBLE ASSETS, NET

The Company has $7.5 million of goodwill related to its purchase of LCAI in the third quarter of fiscal year 2023, which has an indefinite life, and is not deductible for tax purposes.

The carrying amounts of intangible assets were fully impaired as of December 31, 2024.

As of March 31, 2025, the components of, and changes in, the carrying amount of intangible assets, net, were as follows (in thousands):

	Cost		December 31, 2024 Accumulated Amortization			December 31, 2024 Impairment			Intangible Assets, Net
Trademark		795		(369	)		(426	)		-
Technology		6,161		(2,144	)		(4,017	)		-
Customer relationship - Warranty		201		(140	)		(61	)		-
Customer relationship - Rental		2,102		(732	)		(1,370	)		-
Customer relationship - Distribution		4,578		(1,274	)		(3,304	)		-
Backlog		296		(296	)		-			-
Total Amortized Intangible Assets		14,133		(4,955	)		(9,178	)		-

The Company determined no impairment existed for goodwill for the three months ended March 31, 2025.

The Company evaluates the recoverability of long-lived assets, including property and equipment and intangible assets subject to amortization for possible impairment whenever events or circumstances indicate that the carrying amount of such assets may not be fully recoverable. Such events and changes may include significant changes in performance relative to expected operating results, significant changes in asset use, significant negative industry or economic trends, and changes in the Company’s business strategy. Recoverability of these assets is measured by a comparison of the carrying amounts to the future undiscounted cash flows the assets are expected to generate. If such review indicates that the carrying amount of long-lived assets is not recoverable, the carrying amount of such assets is reduced to fair value. There were no impairment charges to long-lived assets during the periods presented.