INTANGIBLE ASSETS

3 Months Ended

Mar. 31, 2025

Goodwill and Intangible Assets Disclosure [Abstract]

We evaluate our indefinite-lived intangible assets, which includes our trade names, for impairment on an annual basis or whenever events or changes occur that would more-likely-than not reduce the fair value below the carrying value of the indefinite-lived intangible assets between annual impairment assessments. As we have only one reporting unit, any impairment assessment on indefinite-lived intangible assets is performed at the consolidated level.

During the three months ended March 31, 2025, the market price of our common stock declined significantly, which impacts the derived discount rate within the impairment model utilized by the Company. This, along with lower revenue projections, resulted in us determining that triggering events occurred on indefinite-lived intangible assets at March 31, 2025, and a quantitative impairment assessment was performed. The fair value of indefinite-lived intangible assets was estimated using the relief from royalty method, which is based on management's estimates of projected revenues and terminal growth rates, taking into consideration market and industry conditions. The discount rate used was based on the weighted-average cost of capital adjusted for the risk, size premium and business-specific characteristics related to projected revenues. The approach used by management to measure the fair value of indefinite-lived intangible assets for impairment evaluation is considered a Level 3 fair value measurement.

Based on the quantitative impairment assessment performed, we determined that the estimated fair value of our indefinite-lived intangible assets was lower than its carrying value primarily as the result of a decrease in the Company’s stock price, coupled with lower revenue projections. Consequently, we recorded a non-cash impairment charge of $2.9 million during the three months ended March 31, 2025.

Intangible assets and related accumulated amortization were as follows:


	March 31, 2025						December 31, 2024
(In thousands)	Gross Carrying Amount		Accumulated Amortization		Net Asset Value		Gross Carrying Amount		Accumulated Amortization		Net Asset Value
Amortizable intangible assets:
Manufacturer relationships	$	45,649	$	26,236	$	19,413	$	45,649	$	25,204	$	20,445
Customer relationships	10,050		5,870		4,180		10,050		5,655		4,395
Non-compete agreements	230		217		13		230		213		17
	55,929		32,323		23,606		55,929		31,072		24,857
Non-amortizable intangible assets:
Trade names and trademarks	27,200		—		27,200		30,100		—		30,100
Total	$	83,129	$	32,323	$	50,806	$	86,029	$	31,072	$	54,957

Amortization expense related to intangible assets was $1.3 million and $2.3 million for the three months ended March 31, 2025 and 2024, respectively.

Future amortization of intangible assets is as follows:


(In thousands)
Remainder of 2025	$	3,755
2026	4,328
2027	4,018
2028	4,018
2029	4,015
Thereafter	3,472
Total	$	23,606