Acquisition (Tables)

9 Months Ended

Nov. 02, 2024

Business Combinations [Abstract]

Schedule of Fair Value of the Consideration Transferred as of the Acquisition Closing Date

A summary of the fair value of the consideration transferred as of the acquisition closing date is presented in the table below:

(In thousands)	Preliminary Estimate		Measurement Period Adjustment			Revised Estimate
Cash Paid at Closing	$	18,732	$	(1	)	$	18,731
Holdback Amount (a)		742		—			742
Fair Value of the Earnout		1,619		(1,619	)		—
Total Purchase Price	$	21,093	$	(1,620	)	$	19,473

a)The holdback amount is expected to be paid out in full over the next two years.

Summary of Purchase Price of Acquisition Allocated on Basis of Fair Value

The following table sets forth the preliminary purchase price allocation of the MTEX acquisition for the estimated fair value of the net assets acquired and liabilities assumed as of May 6, 2024:

(In thousands)	Preliminary Estimate			Measurement Period Adjustment			Revised Estimate
Cash	$	364		$	—		$	364
Accounts Receivable		3,989			(240	)		3,749
Inventory		3,807			(173	)		3,634
Prepaid Expenses and Other Current Assets		301			—			301
Property, Plant and Equipment		4,802			—			4,802
Other Long-Term Assets		5,154			332			5,486
Identifiable Intangible Assets		9,556			(2,017	)		7,539
Goodwill		10,629			95			10,724
Accounts Payable and Other Current Liabilities		(4,225	)		—			(4,225	)
Debt Assumed		(7,918	)		—			(7,918	)
Other Long-Term Liabilities		(5,366	)		383			(4,983	)
Total Purchase Price	$	21,093		$	(1,620	)	$	19,473

Summary of Fair Value of the Acquired Identifiable Intangible Assets and Related Estimated Useful Lives

The following table reflects the preliminary fair value of the acquired identifiable intangible assets and related estimated useful lives:

(In thousands)	Fair Value		Measurement Period Adjustment			Revised Estimate		Useful Life (years)
Customer Relations	$	8,786	$	(6,183	)	$	2,603		10
Internally Developed Technology		488		4,231			4,719		6
Trademarks/Tradenames		282		(65	)		217		3
Total	$	9,556	$	(2,017	)	$	7,539

Summary of Revenue and Earnings Before Taxes

The amounts of revenue and earnings before taxes attributable to MTEX and included in our consolidated statements of income for the three and nine months ended November 2, 2024 were as follows:

	Three Months Ended			Nine Months Ended
(In thousands)	November 2, 2024			November 2, 2024
Revenue	$	1,738		$	2,506
Gross Profit		234			166
Operating Expenses:
Selling Expenses		839			1,755
Research and Development Expenses		209			111
General and Administrative Expenses		273			783
Total Operating Expenses	$	1,321		$	2,649
Operating Loss		(1,087	)		(2,483	)
Other Expenses		(336	)		(693	)
Earnings (Loss) before Taxes	$	(1,423	)	$	(3,176	)