GOODWILL AND INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS

Commencing with the announcement of the Rights Offering, there was a prolonged decline in our share price which did not reverse in the fourth quarter upon cancellation of the Rights Offering. This resulted in a triggering event in December. As a result of this triggering event, we performed a quantitative assessment as of December 31, 2023.

We calculated the estimated fair value of the reporting unit using an equity market capitalization approach, leveraging our outstanding share price adjusted for preferred stock equity and applying a 30% control premium. We found this method to be preferable to the income approach used in the September 30, 2023 quantitative assessment, given that we operate in a single reporting unit, and the emphasis placed on our market capitalization as a result of the depressed share price. As a result of this test, we determined that the carrying value of the reporting unit exceeded its fair value, resulting in an impairment charge of $118.0 million, which represents the entirety of the goodwill balance previously recorded. The non-cash impairment charge is recognized in the Goodwill impairment expense line for 2023 in the accompanying Consolidated Statements of Operations.

The changes in the carrying amounts of goodwill were as follows (in thousands):

Balance as of December 31, 2021	$	80,318
Acquisitions	4,692
Measurement period adjustments related to prior acquisitions	(1,550)
Balance as of December 31, 2022	83,460
Acquisitions	40,735
Goodwill impairment	(117,970)
Measurement period adjustments related to current year acquisitions	(6,225)
Balance as of December 31, 2023	$	—

Accumulated goodwill impairment losses were $118.0 million and $0 as of December 31, 2023 and December 31, 2022, respectively.

Detail of Intangible assets was as follows:

	As of December 31, 2023						As of December 31, 2022
(In thousands)	Gross Carrying Amount		Accumulated Amortization		Net Asset Value		Gross Carrying Amount		Accumulated Amortization		Net Asset Value
Amortizable intangible assets:
Manufacturer relationships	$	71,849	$	26,968	$	44,881	$	65,400	$	20,346	$	45,054
Customer relationships	10,395		4,893		5,502		10,395		3,993		6,402
Non-compete agreements	230		167		63		230		121		109
	82,474		32,028		50,446		76,025		24,460		51,565
Non-amortizable intangible assets:
Trade names and trademarks	30,100		—		30,100		30,100		—		30,100
	$	112,574	$	32,028	$	80,546	$	106,125	$	24,460	$	81,665

Amortization expense related to Intangible assets was as follows:

	Year Ended December 31,
(In thousands)	2023		2022
Amortization	$	7,558	$	7,278

Future amortization of Intangible assets is as follows:

(In thousands)
2024	$	8,138
2025	8,070
2026	7,391
2027	7,080
2028	7,004
Thereafter	12,763
	$	50,446

As of December 31, 2023, the weighted average remaining amortization period was 10.5.