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Note 13 - Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2023

Goodwill and Intangible Assets Disclosure [Text Block]

13. Goodwill and Intangible Assets

Goodwill

The Company historically recognized $4.5 million in goodwill as the result of the acquisition of the membership interest in TAV on September 1, 2021, and an additional $2.0 million in goodwill as a result of the business combination with OTF on August 1, 2022. The fair value of goodwill as of the date of these acquisitions was principally based on Level 3 inputs, such as values obtained from public and private market comparisons. In accordance with ASC Topic 350, Intangibles – Goodwill and Other, the Company did not record any goodwill impairment losses during the years ended December 31, 2023 and 2022. The Company’s goodwill is allocated to the Title Insurance Segment. See Part I, Item 1, Business included in this Annual Report on Form 10-K for a description of the Company’s segments and Note 9, “Segment Information” for allocation of assets to the Company’s segments.

Intangible Assets

The following is a summary of intangible assets excluding goodwill recorded as intangible assets on our Consolidated Balance Sheets (in thousands):

	*As of*		As of
	*December 31, 2023*		December 31, 2022
Intangible assets subject to amortization	$	267	$	342
Total	$	267	$	342

Intangible assets subject to amortization consisted of the following as of December 31, 2023 (dollars in thousands):

	*Weighted-*
	*average remaining amortization period (in years)*		*Gross carrying amount*		*Accumulated amortization*			*Net carrying amount*
Noncompetition agreement		3.6	$	372	$	(105	)	$	267
Total		3.6	$	372	$	(105	)	$	267

No impairment in the value of amortizing intangible assets was recognized during the years ended December 31, 2023 and 2022. Amortization expense of the intangible assets was $75,000 and $31,000 for the years ended December 31, 2023 and 2022, respectively.

Estimated amortization expense of our intangible assets to be recognized by the Company for the next five years is as follows (in thousands):

	*Estimated*
Year ending December 31,	*Amortization Expense*
2024	$	74
2025		74
2026		74
2027		45
Total	$	267