Note 8 - Intangible Assets

12 Months Ended

Dec. 31, 2022

Notes to Financial Statements

Intangible Assets Disclosure [Text Block]

8.    INTANGIBLE ASSETS

The Company evaluates long-lived assets and intangible assets with definite lives for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. When the Company determines that it is probable that undiscounted future cash flows will not be sufficient to recover an asset’s carrying amount, the asset is written down to its fair value. Assets to be disposed of by sale, if any, are reported at the lower of the carrying amount or fair value less cost to sell. The Company’s intangible assets consist of customer relationships and non-compete agreements. During the fiscal year ended December 31, 2022, the Company reviewed the carrying value of its intangible assets due to the events and circumstances surrounding the COVID-19 pandemic and endemic. While COVID-19 has at times negatively impacted the Company and may continue to negatively impact the Company in the future, the Company did not conclude in such review that this negative impact is permanent. As such, no impairment loss on the Company’s intangible assets during the fiscal years ended December 31, 2022, January 1, 2022 and January 2, 2021 was recorded as a result of such review.

All of the Company’s intangible assets are associated with the Engineering segment.  Intangible assets other than goodwill are amortized over their useful lives.  Intangible assets are carried at cost, less accumulated amortization.

Details of intangible assets by class at December 31, 2022, January 1, 2022 and January 2, 2021:

	December 31, 2022		January 1, 2022		January 2, 2021
Restricted covenants	$	-	$	-	$	12
Customer relationships		864		-		83
Total intangible assets	$	864	$	-	$	95

Amortization of acquired intangible assets for the fiscal years ended December 31, 2022, January 1, 2022 and January 2, 2021 was $46, $95 and $321, respectively. The remaining intangible asset balance will be amortized through fiscal 2027.

Estimated future amortization expense, by fiscal years, for these intangibles assets are as follows:

2023	$	182
2024		182
2025		182
2026		182
2027		136
Total	$	864