Intangibles

12 Months Ended

Apr. 30, 2020

Intangibles

Intangibles

6.           Intangibles

Intangibles are included in other assets on the balance sheet. The components of intangibles are as follows (in thousands):

	April 30,		April 30,
	2020		2019
Technology	$	14,950	$	-
Licenses		1,006		1,006
Customer relationships		873		733
In-process research and development		550		-
Non-compete agreements		320		-
Trademarks and tradenames		68		28
Other		3		3
Intangibles, gross		17,770		1,770
Less accumulated amortization		(4,133)		(1,311)
Intangibles, net	$	13,637	$	459

The Company tests identifiable intangible assets and goodwill for impairment in the fourth quarter of each fiscal year unless there are interim indicators that suggest that it is more likely than not that either the identifiable intangible assets or goodwill may be impaired. Due to the political situation within Turkey and the increased uncertainty in the relations between the U.S. and Turkey during the fiscal year ended April 30, 2018, the Company significantly lowered its cash flow expectations for its Altoy operations. As a result of the decline in the Company’s cash flow forecast, the Company performed an interim assessment of impairment of Altoy’s long-lived assets, excluding goodwill during the three months ended October 28, 2017. Based on the analysis, the Company determined that the fair value of Altoy had declined below its carrying value, excluding goodwill. As a result, the Company performed an additional analysis to determine the amount of the impairment loss and recorded an impairment loss totaling $899,000 during the three months ended October 28, 2017, which is included in selling, general and administrative expense on the consolidated statements of income. The fair value of the Altoy asset group was determined based on a discounted cash flow model reflective of the revised cash flow estimates.

The weighted average amortization period at April 30, 2020 and 2019 was four years and one year, respectively. Amortization expense for the years ended April 30, 2020, 2019 and 2018 was $2,822,000, $357,000 and $296,000, respectively.

Technology, in-process research and development, customer relationships, trademarks and tradenames, and non-compete agreements were recognized in conjunction with the Company’s acquisition of Pulse on June 10, 2019. Refer to Note 19 - Business Combinations for further details.

Estimated amortization expense for the next five years is as follows (in thousands):

	Year ending
	April 30,
2021	$	2,792
2022		2,829
2023		2,688
2024		2,629
2025		2,492
	$	13,430