GOODWILL AND OTHER INTANGIBLE ASSETS

9 Months Ended

Sep. 30, 2023

GOODWILL AND OTHER INTANGIBLE ASSETS

GOODWILL AND OTHER INTANGIBLE ASSETS

NOTE 7 – GOODWILL AND OTHER INTANGIBLE ASSETS

Goodwill

Changes in the carrying amount of goodwill are as follows:

Balance, January 1, 2023	$	4,822,000
Currency translation adjustment		1,000
Balance, September 30, 2023	$	4,823,000

NOTE 7 – GOODWILL AND OTHER INTANGIBLE ASSETS – (Continued)

Other intangible assets

	September 30, 2023						December 31, 2022
			Accumulated		Net book				Accumulated		Net book
	Cost		amortization		value		Cost		amortization		value
Other intangible assets:
Customer relationships (1)	$	6,923,000	$	4,532,000	$	2,391,000	$	6,921,000	$	4,099,000	$	2,822,000
Trademarks and trade names (1)		2,167,000		—		2,167,000		2,166,000		—		2,166,000
Trademarks and trade names		200,000		96,000		104,000		200,000		86,000		114,000
Engineering drawings		330,000		279,000		51,000		330,000		268,000		62,000
Non-compete agreements (1)		323,000		321,000		2,000		322,000		303,000		19,000
Patents		1,286,000		1,191,000		95,000		1,286,000		1,143,000		143,000
Totals	$	11,229,000	$	6,419,000	$	4,810,000	$	11,225,000	$	5,899,000	$	5,326,000

(1) A portion of these intangibles are maintained in a foreign currency and are therefore subject to foreign exchange rate fluctuations.

Amortization expense of intangible assets subject to amortization was as follows:

Three months ended September 30,				Nine months ended September 30,
2023		2022		2023		2022
$	160,000	$	151,000	$	519,000	$	469,000

Amortization expense for the balance of 2023, and for each of the next four years and thereafter is estimated to be as follows:

October 1 through December 31, 2023	$	169,000
2024		639,000
2025		610,000
2026		411,000
2027		199,000
Thereafter		615,000
	$	2,643,000

The weighted average amortization period for intangible assets was as follows:

	September 30, 2023	December 31, 2022
Customer relationships	5.4	5.9
Trademarks and trade names	7.8	8.5
Engineering drawings	3.4	4.1
Non-compete agreements	0.3	1.0
Patents	4.4	4.1