Annual report [Section 13 and 15(d), not S-K Item 405]

Goodwill and Intangible Assets

v3.26.1
Goodwill and Intangible Assets
 12 Months Ended
Dec. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets
6.
GOODWILL AND INTANGIBLE ASSETS

Goodwill

The following table summarizes the changes in the carrying amounts of goodwill (in thousands):

 

 

Carrying
Amount

 

Balance - December 31, 2023:

 

$

342

 

Acquisition of Elevated Softgels

 

 

640

 

Translation adjustment

 

 

(11

)

Balance - December 31, 2024:

 

 

971

 

Translation adjustment

 

 

44

 

Balance - December 31, 2025:

 

$

1,015

 

As of December 31, 2025, the Company performed its annual goodwill impairment analysis following the steps laid out in ASC 350-20-35-3C. The Company's annual impairment analysis included a qualitative assessment to determine if it was necessary to perform the quantitative impairment test. The Company determined that there were certain triggering events, including sales declines, macroeconomic headwinds, regulatory headwinds and liquidity concerns. However, the fair value of the reporting unit was higher than its carrying amount. As a result, the Company did not record any goodwill impairment charge for the year ended December 31, 2025. The Company also did not record any goodwill impairment charge for the year ended December 31, 2024.

Intangible Assets

The following table summarizes the intangible assets and the related accumulated amortization (in thousands):

 

 

December 31,
2025

 

 

December 31,
2024

 

Gross carrying amount

 

$

116

 

 

$

116

 

Accumulated amortization

 

 

(46

)

 

 

(22

)

Translation adjustment

 

 

6

 

 

 

(1

)

Net carrying amount

 

$

76

 

 

$

93

 

Changes in the carrying amounts of intangible assets are summarized below (in thousands):

 

Trade names

 

 

Customer relationships

 

 

Total

 

Balance - December 31, 2023:

 

$

52

 

 

$

26

 

 

$

78

 

Acquisition of Elevated Softgels

 

 

—

 

 

 

38

 

 

 

38

 

Amortization

 

 

(11

)

 

 

(10

)

 

 

(21

)

Translation adjustments

 

 

(1

)

 

 

(1

)

 

 

(2

)

Balance - December 31, 2024:

 

 

40

 

 

 

53

 

 

 

93

 

Amortization

 

 

(11

)

 

 

(13

)

 

 

(24

)

Translation adjustments

 

 

5

 

 

 

2

 

 

 

7

 

Balance - December 31, 2025:

 

$

34

 

 

$

42

 

 

$

76

 

The Company did not incur costs to renew or extend the term of acquired intangible assets for the years ended December 31, 2025 and 2024. The estimated amortization expense for the Company's intangible assets is not significant in any future individual fiscal year.