Note 9 - Intangible Assets and Goodwill

12 Months Ended

Dec. 31, 2024

Notes to Financial Statements

Asset Impairment Charges [Text Block]

NOTE 9 - Intangible Assets and Goodwill:

Intangible Assets

The carrying amounts of indefinite-lived trade names are summarized as follows (dollars in thousands):

Indefinite-lived Intangible Assets	Segment	Carrying Amount, December 31, 2023		Impairment Charges			Carrying Amount, December 31, 2024
Trade names:
HPI	Branded Products	$	4,700	$	-		$	4,700
BAMKO	Branded Products		8,900		-			8,900
CID Resources(1)	Healthcare Apparel		14,160		(260	)		13,900
Total		$	27,760	$	(260	)	$	27,500

(1) Includes trade names and trademarks associated with CID Resources and Wink®.

As described in Note 1, the Company performs its annual impairment test for definite-lived intangible assets in the fourth quarter. As part of our annual impairment test the Company determined the fair values were greater than the carrying values. A quantitative impairment test was performed in the third quarter of 2024. As a result of this assessment the Company recognized a $0.3 million impairment charge during the year ended December 31, 2024. As a result of our annual assessment for the year ended December 31, 2023 there was no impairment.

Intangible assets as of December 31, 2024 and December 31, 2023 are summarized as follows (dollars in thousands):

			December 31, 2024					December 31, 2023
Item	Weighted Average Life (In years)		Gross Carrying Amount		Accumulated Amortization			Gross Carrying Amount		Accumulated Amortization
Definite-lived intangible assets:
Customer relationships (7-15 year life)		10.9	$	53,798	$	(30,976	)	$	50,198	$	(27,417	)
Non-compete agreements (3-7 year life)		5.3		1,778		(1,587	)		1,712		(1,507	)
Trademarks		9.1		464		(160	)		414		(118	)
Trade names		2.0		1,030		(710	)		710		(592	)
Total			$	57,070	$	(33,433	)	$	53,034	$	(29,634	)

As part of the acquisition disclosed in Note 6, total intangible assets recorded to the Branded Products segment were valued at $4.0 million, of which $3.6 million related to the customer relationship intangible asset.

Amortization expense for intangible assets for the years ended December 31, 2024 and 2023 was $3.8 million and $4.6 million, respectively.

Estimated future intangible amortization expense is as follows (in thousands):

2025	$	3,592
2026		3,585
2027		3,384
2028		3,036
2029		2,391
Thereafter		7,649
Total	$	23,637

Goodwill 

As described in Note 6, the Company acquired $2.3 million of goodwill as a result of its acquisition of 3Point, all of which was recorded in our Branded Products reportable segment.