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Note 6 - Goodwill and Intangible Assets

3 Months Ended

Mar. 31, 2022

Goodwill and Intangible Assets Disclosure [Text Block]

(6)

GOODWILL AND INTANGIBLE ASSETS

We have three operating segments which are also our reporting units: Electronic Test, Environmental Technologies and Process Technologies. Goodwill and intangible assets on our balance sheets are the result of our acquisitions.

Goodwill

Changes in the amount of the carrying value of goodwill for the three months ended March 31, 2022 are as follows:

Balance - January 1, 2022	$	21,448
Adjustments to preliminary amounts recorded in the fourth quarter of 2021 for contingent consideration and intangible assets related to acquisition of Acculogic (see Note 3)		451
Impact of foreign currency translation adjustments		(36	)
Balance - March 31, 2022	$	21,863

Goodwill was comprised of the following at March 31, 2022 and December 31, 2021:

	March 31,		December 31,
	2022		2021
Electronic Test:
Acculogic	$	3,566	$	3,055

Environmental Technologies:
Sigma		1,656		1,656
Thermonics		50		50
Z-Sciences		111		111
Total Environmental Technologies		1,817		1,817

Process Technologies:
Ambrell		12,032		12,032
Videology		4,448		4,544
Total Process Technologies		16,480		16,576

Total goodwill	$	21,863	$	21,448

Intangible Assets

Changes in the amount of the carrying value of indefinite-lived intangible assets for the three months ended March 31, 2022 are as follows:

Balance - January 1, 2022	$	8,428
Adjustments to preliminary amounts recorded in the fourth quarter of 2021 related to acquisition of Acculogic (see Note 3)		20
Impact of foreign currency translation adjustments		2
Balance - March 31, 2022	$	8,450

Changes in the amount of the carrying value of finite-lived intangible assets for the three months ended March 31, 2022 are as follows:

Balance - January 1, 2022	$	13,206
Adjustments to preliminary amounts recorded in the fourth quarter of 2021 related to acquisition of Acculogic (see Note 3)		29
Impact of foreign currency translation adjustments		2
Amortization		(782	)
Balance - March 31, 2022	$	12,455

Intangible assets were allocated to our reporting segments at March 31, 2022 and December 31, 2021 as follows:

	March 31,		December 31,
	2022		2021
Electronic Test:
Acculogic	$	4,973	$	5,074

Environmental Technologies:
Sigma		510		510
Thermonics		3		5
Z-Sciences		365		378
Total Environmental Technologies		878		893

Process Technologies:
Ambrell		10,375		10,680
Videology		4,679		4,987
Total Process Technologies		15,054		15,667

Total intangible assets	$	20,905	$	21,634

The following tables provide further detail about our intangible assets as of March 31, 2022 and December 31, 2021:

	March 31, 2022
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Finite-lived intangible assets:
Customer relationships	$	16,566	$	6,634	$	9,932
Technology		2,971		682		2,289
Patents		590		587		3
Backlog		507		276		231
Software		270		270		-
Trade name		140		140		-
Total finite-lived intangible assets		21,044		8,589		12,455
Indefinite-lived intangible assets:
Trademarks		8,450		-		8,450
Total intangible assets	$	29,494	$	8,589	$	20,905

	December 31, 2021
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Finite-lived intangible assets:
Customer relationships	$	16,544	$	6,160	$	10,384
Technology		2,950		569		2,381
Patents		590		585		5
Backlog		521		85		436
Software		270		270		-
Trade name		140		140		-
Total finite-lived intangible assets		21,015		7,809		13,206
Indefinite-lived intangible assets:
Trademarks		8,428		-		8,428
Total intangible assets	$	29,443	$	7,809	$	21,634

We generally amortize our finite-lived intangible assets over their estimated useful lives based on the pattern in which the economic benefits of the intangible assets are expected to be consumed, or on a straight-line basis, if an alternate amortization method cannot be reliably determined. Any such alternate amortization method would. None of our intangible assets have any residual value.

The following table sets forth the estimated annual amortization expense for each of the next five years:

2022 (remainder)	$	1,937
2023	$	2,137
2024	$	2,013
2025	$	1,799
2026	$	1,188