Goodwill and Intangible Assets

12 Months Ended

Jun. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

11. Goodwill and Intangible Assets

The changes in the carrying amount of goodwill are as follows (in thousands):

Balance at June 30, 2020	$	56,678
Goodwill from YES Acquisition (as described in Note 3)		7,230
Working capital adjustments (1)		(27	)
Balance at June 30, 2021	$	63,881
Goodwill from fiscal 2022 acquisitions (as described in Note 3)		7,134
Working capital adjustments (2)		24
Balance at June 30, 2022	$	71,039

(1)	Relates to working capital adjustments from business acquisitions consummated by the Company during the fiscal year ended June 30, 2020
(2)	Relates to working capital adjustments from business acquisitions consummated by the Company during fiscal 2021

Table of Contents

EVI Industries, Inc. and Subsidiaries

Notes to Consolidated Financial Statements

Customer-related intangibles, tradenames and other intangible assets as of June 30, 2022 and 2021 consisted of the following (dollars in thousands):

June 30,	Estimated Useful Lives (in years)		2022			2021

Customer-related intangibles		8-10	$	20,887		$	18,237
Tradenames		Indefinite		13,005			11,155
Covenants not to compete		5		566			566
License agreements		10		529			529
Trademarks and patents		10-15		176			176
				35,163			30,663
Accumulated amortization				(8,929	)		(6,986	)
			$	26,234		$	23,677

Amortization expense was approximately $1.9 million in both fiscal 2022 and fiscal 2021, and is included in selling, general and administrative expenses in the consolidated statements of operations. The weighted average remaining estimated useful lives for customer-related intangibles, covenants not to compete, license agreements, and trademarks and patents were 6.8 years, 0 years, 0 years and 0 years, respectively.

Based on the carrying amount of intangible assets as of June 30, 2022, and assuming no future impairment of the underlying assets, the estimated future amortization at the end of each fiscal year in the five-year period ending June 30, 2027 and thereafter is as follows (in thousands):

Fiscal years ending June 30,

2023	$	2,106
2024		2,106
2025		2,102
2026		2,101
2027		1,778
Thereafter		3,036
Total	$	13,229