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Note 5 - Goodwill and Intangible Assets

6 Months Ended

Jun. 30, 2024

Goodwill and Intangible Assets Disclosure [Text Block]

(5)

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 six months ended June 30, 2024 are as follows:

Balance - January 1, 2024	$	21,728
Acquisition of Alfamation		13,553
Impact of foreign currency translation adjustments		(413	)
Balance – June 30, 2024	$	34,868

Goodwill was comprised of the following at June 30, 2024 and December 31, 2023:

	June 30,		December 31,
	2024		2023
Electronic Test	$	16,631	$	3,436
Environmental Technologies		1,817		1,817
Process Technologies		16,420		16,475
Total goodwill	$	34,868	$	21,728

Intangible Assets

Changes in the amount of the carrying value of indefinite-lived intangible assets for the six months ended June 30, 2024 are as follows:

Balance - January 1, 2024	$	8,398
Acquisition of Alfamation		1,967
Impact of foreign currency translation adjustments		(74	)
Balance – June 30, 2024	$	10,291

Changes in the amount of the carrying value of finite-lived intangible assets for the six months ended June 30, 2024 are as follows:

Balance - January 1, 2024	$	8,198
Acquisition of Alfamation		10,384
Impact of foreign currency translation adjustments		(323	)
Amortization		(1,492	)
Balance - June 30, 2024	$	16,767

Intangible assets were allocated to our reporting segments at June 30, 2024 and December 31, 2023 as follows:

	June 30,		December 31,
	2024		2023
Electronic Test		14,986		3,728
Environmental Technologies		787		794
Process Technologies		11,285		12,074
Total intangible assets	$	27,058	$	16,596

The following tables provide further detail about our intangible assets as of June 30, 2024 and December 31, 2023:

	June 30, 2024
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Finite-lived intangible assets:
Customer relationships	$	22,613	$	10,577	$	12,036
Technology		5,737		1,681		4,056
Patents		590		590		-
Backlog		1,455		780		675
Software		270		270		-
Trade name		140		140		-
Total finite-lived intangible assets		30,805		14,038		16,767
Indefinite-lived intangible assets:
Trademarks		10,291		-		10,291
Total intangible assets	$	41,096	$	14,038	$	27,058

	December 31, 2023
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Finite-lived intangible assets:
Customer relationships	$	16,407	$	9,687	$	6,720
Technology		2,895		1,417		1,478
Patents		590		590		-
Backlog		499		499		-
Software		270		270		-
Trade name		140		140		-
Total finite-lived intangible assets		20,801		12,603		8,198
Indefinite-lived intangible assets:
Trademarks		8,398		-		8,398
Total intangible assets	$	29,199	$	12,603	$	16,596

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 be based on the pattern in which the economic benefits of the intangible asset are expected to be consumed. 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:

2024 (remainder)	$	1,809
2025	$	2,656
2026	$	1,857
2027	$	1,364
2028	$	1,234