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INTANGIBLE ASSETS

12 Months Ended

Jan. 31, 2024

NOTE 6 – INTANGIBLE ASSETS

Goodwill

The Company used a qualitative approach to assess the goodwill of the GPS reporting unit, which is included in the power industry services segment, as of November 1, 2023 and 2022. At each date, the Company concluded that it was more likely than not that the fair value of the reporting unit exceeded the corresponding carrying value. Therefore, completion of the quantitative impairment assessment was considered to be unnecessary in each case.

Similarly, the Company used a qualitative approach to assess the goodwill of the TRC reporting unit, which represents the industrial construction services segment, as of November 1, 2023 and 2022 and concluded that it was more likely than not that the fair value of the reporting unit exceeded the corresponding carrying value. Therefore, the completion of the quantitative impairment assessment was considered to be unnecessary.

During Fiscal 2022, the Company completed the acquisition of Lee Telecom, Inc. (“LTI”), which is located in Hampton, Virginia. The results of operations of LTI are included in the Company’s telecommunications infrastructure services segment. The acquisition represented a purchase of the assets of LTI, for which the Company paid $0.6 million cash, including customer contracts and goodwill.

The changes in the balances of the Company’s goodwill by reportable segment for Fiscal 2024 and Fiscal 2023 were as follows:


	Power		Industrial		Telecom
	Services		Services		Services		Totals
Goodwill as of February 1, 2022	$	18,476	$	9,467	$	90	$	28,033
Impairment losses		—		—		—		—
Goodwill as of January 31, 2023		18,476		9,467		90		28,033
Impairment losses		—		—		—		—
Goodwill as of January 31, 2024	$	18,476	$	9,467	$	90	$	28,033

Balances, January 31, 2024:
Goodwill	$	22,525	$	14,365	$	90	$	36,980
Accumulated impairment losses		(4,049)		(4,898)		—		(8,947)
Goodwill as of January 31, 2024	$	18,476	$	9,467	$	90	$	28,033

As of January 31, 2024, the accumulated impairment losses for the power industry services segment relate solely to the APC reporting unit.

For income tax reporting purposes, the 15-year straight-line amortization of goodwill related to acquisitions in the approximate amount of $16.5 million was completed during the year ended January 31, 2024. The other amounts of the Company’s goodwill are not amortizable for income tax reporting purposes.

Other Intangible Assets

The Company’s intangible assets, other than goodwill, relate primarily to the industrial construction services segment and consisted of the following as of January 31, 2024 and 2023:


		January 31, 2024						January 31, 2023
	Estimated	Gross		Accumulated		Net		Gross		Accumulated		Net
	Useful Life	Amounts		Amortization		Amounts		Amounts		Amortization		Amounts
Trade name	15 years	$	4,499	$	2,450	$	2,049	$	4,499	$	2,150	$	2,349
Customer relationships	10 years		916		748		168		916		656		260
Totals		$	5,415	$	3,198	$	2,217	$	5,415	$	2,806	$	2,609

The amounts related to the trade name that became fully amortized during Fiscal 2023 were removed from the table. The Company believes that the useful life of the remaining trade name represents the remaining number of years that such intangible asset is expected to contribute to future cash flows. There were no additions to other intangible assets during Fiscal 2024 or Fiscal 2023. In addition, there were no impairment losses related to the assets for Fiscal 2024, Fiscal 2023 or Fiscal 2022. Amortization expense related to intangible assets for Fiscal 2024, Fiscal 2023 and Fiscal 2022 were $0.4 million, $0.7 million and $0.9 million, respectively.

The future amounts of amortization related to intangibles are presented below for the years ending January 31:


2025	$	392
2026		375
2027		300
2028		300
2029		300
Thereafter		550
Total	$	2,217