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Goodwill and Other Intangible Assets
 12 Months Ended
Jun. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets
10.
Goodwill and Other Intangible Assets

The Company’s investment management and durable medical equipment segments include identifiable intangible assets acquired through acquisitions in prior years. Goodwill presented on the consolidated balance sheet consists only of the goodwill acquired as part of the acquisitions of the durable medical equipment businesses.

The changes in the carrying value of goodwill are as follows:

 

 

For the years ended June 30,

 

(in thousands)

 

2022

 

 

2021

 

Beginning Balance

 

$

50,536

 

 

$

50,010

 

Acquisitions

 

 

1,927

 

 

 

648

 

Purchase accounting adjustment

 

 

-

 

 

 

(122

)

Ending Balance

 

$

52,463

 

 

$

50,536

 

The Company’s annual impairment assessment date for goodwill is April 1. No impairment triggering events have been identified since our prior year annual impairment analysis. In the current year, we performed a quantitative impairment test for our annual impairment assessment. Based on the analyses performed, the fair value of the durable medical equipment reporting unit exceeded the carrying value by 34% and no impairment was noted. The fair value of this reporting unit was derived using a combination of present value of estimated cash flows and the valuations and prices of comparable businesses. The discount rate used in this analysis was 13.0% and revenue and EBITDA multiples averaged 1.2x and 7.5x, respectively.

The following tables provide additional detail related to the Company’s acquired identifiable intangible assets:

 

 

As of June 30, 2022

 

 

As of June 30, 2021

 

(in thousands)

 

Gross
Carrying
Amount

 

 

Accumulated
Amortization

 

 

Net
Carrying
Amount

 

 

Gross
Carrying
Amount

 

 

Accumulated
Amortization

 

 

Net
Carrying
Amount

 

Durable Medical Equipment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tradename

 

$

9,060

 

 

$

(3,443

)

 

$

5,617

 

 

$

9,060

 

 

$

(2,511

)

 

$

6,549

 

Hospital Contracts

 

 

90

 

 

 

(49

)

 

 

41

 

 

 

90

 

 

 

(15

)

 

 

75

 

Non-compete agreements

 

 

1,370

 

 

 

(1,107

)

 

 

263

 

 

 

1,370

 

 

 

(890

)

 

 

480

 

 

 

 

10,520

 

 

 

(4,599

)

 

 

5,921

 

 

 

10,520

 

 

 

(3,416

)

 

 

7,104

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment Management

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investment management agreements

 

 

15,264

 

 

 

(2,753

)

 

 

12,511

 

 

 

3,900

 

 

 

(2,293

)

 

 

1,607

 

Assembled workforces

 

 

1,103

 

 

 

(364

)

 

 

739

 

 

 

526

 

 

 

(309

)

 

 

217

 

 

 

 

16,367

 

 

 

(3,117

)

 

 

13,250

 

 

 

4,426

 

 

 

(2,602

)

 

 

1,824

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

$

26,887

 

 

$

(7,716

)

 

$

19,171

 

 

$

14,946

 

 

$

(6,018

)

 

$

8,928

 

 

Aggregate Amortization Expense (in thousands):

 

 

 

For the year ended June 30, 2022

 

$

1,698

 

For the year ended June 30, 2021

 

 

1,690

 

 

Estimated Future Amortization Expense (in thousands):

 

 

 

For the year ending June 30, 2023

 

$

2,283

 

For the year ending June 30, 2024

 

 

2,084

 

For the year ending June 30, 2025

 

 

1,974

 

For the year ending June 30, 2026

 

 

1,912

 

For the year ending June 30, 2027

 

 

1,838

 

Thereafter

 

 

9,080

 

Total

 

 

19,171