Note 8 - Goodwill and Other Intangible Assets

3 Months Ended

Sep. 30, 2025

Notes to Financial Statements

Goodwill and Intangible Assets Disclosure [Text Block]

NOTE 8 - GOODWILL AND OTHER INTANGIBLE ASSETS

The carrying values of goodwill and other intangible assets with indefinite lives are reviewed at least annually for possible impairment. The Company may first assess qualitative factors in order to determine if goodwill and indefinite-lived intangible assets are impaired. If through the qualitative assessment it is determined that it is more likely than not that goodwill and indefinite-lived assets are not impaired, no further testing is required. If it is determined more likely than not that goodwill and indefinite-lived assets are impaired, or if the Company elects not to first assess qualitative factors, the Company’s impairment testing continues with the estimation of the fair value of the reporting unit using a combination of a market approach and an income (discounted cash flow) approach, at the reporting unit level. The estimation of the fair value of the reporting unit requires significant management judgment with respect to revenue and expense growth rates, changes in working capital and the selection and use of an appropriate discount rate. The estimates of the fair value of reporting units are based on the best information available as of the date of the assessment. The use of different assumptions would increase or decrease estimated discounted future operating cash flows and could increase or decrease an impairment charge. Company management uses its judgment in assessing whether assets may have become impaired between annual impairment tests. Indicators such as adverse business conditions, economic factors and technological change or competitive activities may signal that an asset has become impaired. 

The Company identified its reporting units in conjunction with its annual goodwill impairment testing. The Company has a total of five reporting units that contain goodwill. One reporting unit is within the Lighting Segment and four reporting units are within the Display Solutions Segment. The tradename intangible assets have an indefinite life and are also tested separately on an annual basis. The Company relies upon a number of factors, judgments and estimates when conducting its impairment testing including, but not limited to, the Company’s stock price, operating results, forecasts, anticipated future cash flows, and marketplace data. There are inherent uncertainties related to these factors and judgments in applying them to the analysis of goodwill impairment.

The following table presents information about the Company's goodwill on the dates or for the periods indicated:

(In thousands)	Lighting Segment			Display Solutions Segment			Total
Balance as of September 30, 2025
Goodwill	$	70,971		$	82,865		$	153,836
Measurement period adjustments		-			(262	)		(262	)
Foreign currency translation		-			(218	)		(218	)
Accumulated impairment losses		(61,763	)		(27,525	)		(89,288	)
Goodwill, net as of September 30, 2025	$	9,208		$	54,860		$	64,068
Balance as of June 30, 2025
Goodwill	$	70,971		$	75,714		$	146,685
Goodwill acquired, net of adjustments		-			6,769			6,769
Foreign currency translation		-			382			382
Accumulated impairment losses		(61,763	)		(27,525	)		(89,288	)
Goodwill, net as of June 30, 2025	$	9,208		$	55,340		$	64,548

The gross carrying amount and accumulated amortization by each major intangible asset class is as follows:

(In thousands)	September 30, 2025
	Gross Carrying Amount		Accumulated Amortization		Net Amount
Amortized Intangible Assets
Customer relationships	$	78,315	$	26,307	$	52,008
Patents		268		268		-
LED technology, software		24,126		19,103		5,023
Trade name		3,685		1,456		2,229
Non-compete		587		317		270
Total Amortized Intangible Assets	$	106,981	$	47,451	$	59,530
Indefinite-lived Intangible Assets
Trademarks and trade names		16,982		-		16,982
Total indefinite-lived Intangible Assets		16,982		-		16,982
Total Other Intangible Assets	$	123,963	$	47,451	$	76,512

(In thousands)	June 30, 2025
	Gross Carrying Amount		Accumulated Amortization		Net Amount
Amortized Intangible Assets
Customer relationships	$	78,485	$	25,251	$	53,234
Patents		268		268		-
LED technology, software		24,126		18,694		5,432
Trade name		3,704		1,404		2,300
Non-compete		590		280		310
Total Amortized Intangible Assets	$	107,173	$	45,897	$	61,276
Indefinite-lived Intangible Assets
Trademarks and trade names		16,982		-		16,982
Total indefinite-lived Intangible Assets		16,982		-		16,982
Total Other Intangible Assets	$	124,155	$	45,897	$	78,258

	Three Months Ended
	September 30
(In thousands)	2025		2024
Amortization expense of other intangible assets	$	1,554	$	1,408

The Company expects to record annual amortization expense as follows:

(In thousands)
2026	$	6,226
2027	$	6,008
2028	$	5,568
2029	$	4,927
2030	$	4,921
After 2030	$	33,626