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Note 4 - Supplemental Balance Sheet Information

12 Months Ended

Dec. 31, 2025

Supplemental Balance Sheet Disclosures [Text Block]

Note 4 - Supplemental Balance Sheet Information

a.	Cash and Restricted Cash

The composition of the Company’s cash was as follows.

	December 31,
	2025		2024
Cash	$	9,345	$	6,854

b.	Inventory, Net

Inventories are stated at the lower of cost or net realizable value with cost determined under the first-in, first-out (FIFO) method. The composition of inventories, net was:

	December 31,
	2025		2024
Raw materials	$	42,150	$	36,035
Work in process	4,045			4,501
Finished products	7,813			10,827
Total	$	54,008	$	51,363

c.	Property, Plant and Equipment

Major classes of property, plant and equipment consisted of the following:

	December 31,
	2025			2024
Land	$	4,693		$	4,693
Buildings and leasehold improvements		30,179			30,109
Machinery and equipment		63,556			60,986
Furniture and fixtures		3,195			3,067
Computer hardware and software		8,164			7,990
Construction in progress		3,129			2,077
		112,916			108,922
Less: Accumulated depreciation		(72,519	)		(68,437	)
Total	$	40,397		$	40,485

Depreciation expense was $3,981 and $3,125 for the years ended December 31, 2025, and 2024, respectively.

d.	Goodwill and Other Intangible Assets

The Company conducted its annual impairment test for goodwill and other indefinite-lived intangible assets as of October 1, 2025. We identified two (2) goodwill reporting units and five (5) indefinite-lived intangible assets for trademarks and trade names. We performed a quantitative impairment assessment of each goodwill reporting unit and indefinite-lived intangible asset. Based on the results of our quantitative impairment assessment, and consideration of qualitative factors, as of our test date and December 31, 2025, no impairments were identified with respect to goodwill, and it was concluded that our trademarks and trade names were fully impaired as a result of the Company’s global rebranding initiative to consolidate all sub-brands under a singular, unified master brand – Ultralife, which launched during the fourth quarter of 2025.

The following table summarizes the goodwill activity by segment for the years ended December 31, 2025, and 2024:

	Battery & Energy Products		Communications Systems		Total
Balance – January 1, 2025	$	33,513	$	11,493	$	45,006
Effect of foreign currency translation		370		-		370
Balance – December 31, 2025	$	33,883	$	11,493	$	45,376

The composition of intangible assets was:

	December 31, 2025
	Cost		Accumulated amortization		Net
Customer relationships	$	18,333	$	8,360	$	9,973
Patents and technology		5,762		5,635		127
Other		1,500		667		833
Trade names		-		-		-
Trademarks		-		-		-
Total other intangible assets	$	25,595	$	14,662	$	10,933

	December 31, 2024
	Cost		Accumulated amortization		Net
Customer relationships	$	18,154	$	7,296	$	10,858
Patents and technology		5,690		5,428		262
Other		1,500		591		909
Trade names		9,942		813		9,129
Trademarks		3,399		-		3,399
Total other intangible assets	$	38,685	$	14,128	$	24,557

The change in the cost value of other intangible assets is primarily the result of the impairment of our trademarks and trade names during the year ended December 31, 2025 as a result of the Company’s rebranding initiative, as well as the effect of foreign currency translations.

Amortization of other intangible assets was included in the following financial statement captions:

	Year ended December 31,
	2025		2024
Selling, general and administrative expense	$	1,395	$	929
Research and development expense		123		103
Total	$	1,518	$	1,032

Future amortization expense of amortizable intangible assets will be approximately $1,066, $1,066, $1,066, $1,046 and $1,029 for the five fiscal years ending December 31, 2026, through 2030, respectively.