Note 8 - Goodwill and Intangible Assets

12 Months Ended

Jan. 31, 2021

Notes to Financial Statements

Goodwill and Intangible Assets Disclosure [Text Block]

8. GOODWILL AND INTANGIBLE ASSETS

Goodwill

The changes in the carrying amount of goodwill for the fiscal years ended January 31, 2020 and 2021 were as follows:

	Gross Carrying Amount			Accumulated Impairment			Goodwill, Net
	(in thousands)
Balance at January 31, 2019	$	28,031		$	(15,608	)	$	12,423
Impact of foreign currency translation		(35	)		—			(35	)
Balance at January 31, 2020	$	27,996		$	(15,608	)	$	12,388
Additions		12,785						12,785
Impact of foreign currency translation		163			-			163
Balance at January 31, 2021	$	40,944		$	(15,608	)	$	25,336

Additions to goodwill for the fiscal year ended January 31, 2021 were the result of the acquisition of Allocation Network GmbH where the purchase price exceeded the estimated fair value of the acquired net assets.

During each of the fourth quarters of fiscal 2021, 2020 and 2019, an impairment analysis was performed at the enterprise level which compared the Company’s market capitalization to its net assets as of the test date, November 30. As the market capitalization substantially exceeded the Company’s net assets, there was no indication of goodwill impairment for fiscal 2021, 2020 and 2019. The Company did not identify any events or changes in circumstances since the performance of its annual goodwill impairment test that would require the performance another goodwill impairment test during the fiscal year.

Intangible Assets

Intangible assets and accumulated amortization at January 31 were as follows:

	2021			2020
	(in thousands)
Amortizable intangible assets:
Customer relationships	$	3,039		$	1,379
Less accumulated amortization		(681	)		(394	)
Net amortizable intangible assets	$	2,358		$	985

The Company’s intangible assets are related to acquisitions completed in the second and third quarters of fiscal 2019 and in the fourth quarter of fiscal 2021. Intangible assets are included in “Other assets, net” in the accompanying Consolidated Balance Sheets, and are amortized over an estimated five-year useful life. 

Amortization of intangible assets from acquisitions was $0.3 million, $0.3 million and $0.1 million for fiscal 2021, 2020 and 2019, respectively. The following table summarizes the estimated amortization expense relating to the Company’s intangible assets as of January 31, 2021:

Fiscal Years	(in thousands)
2022	$	605
2023		608
2024		495
2025		339
Thereafter		311
	$	2,358