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

Intangible Assets, Net and Goodwill

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Intangible Assets, Net and Goodwill
 12 Months Ended
Dec. 31, 2025
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Disclosure [Text Block]
NOTE 9 — INTANGIBLE ASSETS, NET AND GOODWILL

During the third quarter of 2025, declines in forecasted revenues and gross margins, primarily as a result of impacts from incremental tariffs and a difficult macroeconomic environment, led to triggering events for the prAna and Mountain Hardwear trade names and goodwill reporting units. As a result, the Company performed interim quantitative impairment tests where the Company compared the estimated fair values of the prAna and Mountain Hardwear trade names and goodwill reporting units to their carrying values.

The fair values of the prAna and Mountain Hardwear trade names were estimated using a relief-from-royalty method under the income approach. The key assumptions used in the relief-from-royalty method were the Company's estimates of projected revenues, royalty rate, and discount rate, taking into consideration market and industry conditions. In the Company's interim quantitative impairment test of the prAna trade name, the fair value of the prAna trade name was less than its carrying value of $51.8 million and, therefore, an impairment charge of $8.0 million was recorded. In the Company's interim quantitative impairment test of the Mountain Hardwear trade name, the fair value of the Mountain Hardwear trade name exceeded its carrying value and, therefore, no impairment was recorded. The Company did not identify additional triggering events or record additional impairment charges for trade names as part of its annual impairment test. There were no triggering events or impairment charges recorded for trade names during the twelve months ended December 31, 2024.

The fair values of the prAna and Mountain Hardwear goodwill reporting units were estimated using a combination of discounted cash flow and market-based valuation methods. The key assumptions used in the discounted cash flow method were cash flow projections and the discount rate. Cash flow projections were developed, in part, from the Company's annual and long-range planning processes. The discount rate was the estimated weighted-average cost of capital of each reporting unit from a market-participant perspective. The key assumptions used in the market-based valuation method were market multiples for guideline public companies. In the Company's interim quantitative impairment test of the prAna reporting unit, the fair value of the prAna reporting unit was less than its carrying value and, therefore, an impairment charge of $8.8 million was recorded. In the Company's interim quantitative impairment test of the Mountain Hardwear reporting unit, the fair value of the Mountain Hardwear reporting unit was less than its carrying value and, therefore, an impairment charge of $12.2 million was recorded. The Company did not identify additional triggering events or record additional impairment charges for goodwill as
part of its annual impairment test. There were no triggering events or impairment charges recorded for goodwill during the twelve months ended December 31, 2024.
INTANGIBLE ASSETS, NET

Intangible assets, net consisted of the following:

As of December 31,
(in thousands)
 2025 2024
Intangible assets with definite lives:
Patents and purchased technology $ 14,198  $ 14,198 
Customer relationships 23,000  23,000 
Gross carrying amount 37,198  37,198 
Accumulated amortization:
Patents and purchased technology (14,198) (14,198)
Customer relationships (23,000) (23,000)
Accumulated amortization (37,198) (37,198)
Net carrying amount —  — 
Intangible assets with indefinite lives 71,221  79,221 
Intangible assets, net $ 71,221  $ 79,221 
ntangible assets subject to amortization were fully amortized as of December 31, 2025 and 2024. Amortization expense for intangible assets subject to amortization was $0.7 million for the year ended December 31, 2024 and $1.7 million for the year ended December 31, 2023.
GOODWILL
The following table sets forth the changes in Goodwill.

(in thousands)
Balance as of December 31, 2023
Goodwill
 $ 73,208 
Accumulated impairment losses
 (46,514)
Carrying value 26,694 
Impairment losses during 2024
— 
Balance as of December 31, 2024
Goodwill
 73,208 
Accumulated impairment losses
 (46,514)
Carrying value 26,694 
Impairment losses during 2025
(21,000)
Balance as of December 31, 2025
Goodwill
 73,208 
Accumulated impairment losses
 (67,514)
Carrying value $ 5,694