Note 5 - Goodwill and Intangible Assets

9 Months Ended

Sep. 30, 2024

Notes to Financial Statements

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 nine months ended September 30, 2024 are as follows:

Balance - January 1, 2024	$	21,728
Acquisition of Alfamation		10,640
Impact of foreign currency translation adjustments		107
Balance – September 30, 2024	$	32,475

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

	September 30,		December 31,
	2024		2023
Electronic Test	$	14,166	$	3,436
Environmental Technologies		1,817		1,817
Process Technologies		16,492		16,475
Total goodwill	$	32,475	$	21,728

Intangible Assets

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

Balance - January 1, 2024	$	8,398
Acquisition of Alfamation		2,077
Impact of foreign currency translation adjustments		24
Balance – September 30, 2024	$	10,499

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

Balance - January 1, 2024	$	8,198
Acquisition of Alfamation		11,476
Impact of foreign currency translation adjustments		140
Amortization		(2,436	)
Balance - September 30, 2024	$	17,378

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

	September 30,		December 31,
	2024		2023
Electronic Test		16,124		3,728
Environmental Technologies		778		794
Process Technologies		10,975		12,074
Total intangible assets	$	27,877	$	16,596

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

	September 30, 2024
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Finite-lived intangible assets:
Customer relationships	$	23,908	$	11,061	$	12,847
Technology		5,877		1,863		4,014
Patents		590		590		-
Backlog		1,612		1,095		517
Software		270		270		-
Trade name		140		140		-
Total finite-lived intangible assets		32,397		15,019		17,378
Indefinite-lived intangible assets:
Trademarks		10,499		-		10,499
Total intangible assets	$	42,896	$	15,019	$	27,877

	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)	$	929
2025	$	2,687
2026	$	1,835
2027	$	1,341
2028	$	1,209