Note 4 - Investments

6 Months Ended

Jun. 30, 2025

Notes to Financial Statements

Investment [Text Block]

4. INVESTMENTS

As of June 30, 2025, we held a 20.2 percent ownership interest in a privately held identity and professional services company with ties to the FinTech industry. The carrying value of our investment was $2,842,000 at June 30, 2025, included in investments on the Consolidated Balance Sheets. We account for our investment using the equity method of accounting which resulted in losses of $165,000 and $681,000 for the three and six months ended June 30, 2025, respectively, and losses of $199,000 and $438,000 for the three and six months ended June 30, 2024, respectively, included in investment loss on the Consolidated Statement of Operations. We evaluate on a continuing basis whether any impairment indicators are present that would require additional analysis or write-downs of the investment. The investee closed a funding round of $8.5 million in April 2025. CoreCard participated in the new investment and contributed an additional $300,000 in the fourth quarter of 2024 which diluted our ownership to 20.2 percent once the fundraising round was closed. The valuation for the fundraise is above our carrying value and therefore no impairment indicators are present as of June 30, 2025. While we have not recorded an impairment related to this investment as of June 30, 2025, variations from current expectations could result in future impairment charges. At June 30, 2025, the carrying value of this investment exceeded our share of the investee’s net assets by approximately $1.6 million. Substantially all of this difference is comprised of goodwill and other intangible assets.

As of June 30, 2025, we held a 12.5 percent ownership interest in a privately held company that provides supply chain and receivables financing with a carrying value of $182,000, recorded at cost and reduced by any impairments, included in investments on the Consolidated Balance Sheets. We also held a 3.4 percent ownership interest in a privately held technology company and program manager in the FinTech industry with a carrying value of $155,000, recorded at cost and reduced by any impairments, included in investments on the Consolidated Balance Sheets.