Note 5 - Intangible Assets and Goodwill

12 Months Ended

Dec. 31, 2023

Notes to Financial Statements

Goodwill and Intangible Assets Disclosure [Text Block]

5. Intangible Assets and Goodwill

For the year ended December 31, 2023, in accordance with ASC 350, the Company performed a qualitative analysis to determine if it is more likely than not the fair value of its intangible assets and goodwill is less than the carrying amount. In performing the assessment, the Company used current market capitalization, internal forecasts, and other factors as the best evidence of fair value.  These assumptions represent Level 3 inputs.  Reviewing the market capitalization, it was determined that during the year ended December 31, 2023, the Company experienced a significant and sustained decline in its stock price.  The decline resulted in the Company’s market capitalization falling significantly below the recorded value of its consolidated net assets.  Additionally, in February 2024, the Company’s distribution agreement with Corning was not extended for up to four years as was available in the agreement.  As a result, the Company determined it was unlikely it would be able to successfully commercialize its in-process technology, halted its development, and removed all related revenues from its long-term forecasts.  Driven by these factors, the qualitative assessment determined that it is more likely than not the fair value of the Company’s indefinite-lived and developed technology intangible assets and related goodwill is less than the carrying value. The Company recorded an impairment charge of $1,255,000 to intangible assets and $781,000 to goodwill during the year ended December 31, 2023, as shown in the following table:

	Intangible Assets			Goodwill
Balance at January 1, 2022, net	$	1,318,000		$	781,000
Amortization		(32,000	)		–
Balance at December 31, 2022, net	$	1,286,000		$	781,000
Amortization		(31,000	)		–
Impairment charge		(1,255,000	)		(781,000	)
Balance at December 31, 2023, net	$	–		$	–