Note 6 - Intangible Assets and Goodwill

12 Months Ended

Dec. 28, 2024

Notes to Financial Statements

Intangible Assets Disclosure [Text Block]

Note 6 - Intangible Assets and Goodwill

In connection with our previous acquisitions, we have recorded identifiable intangible assets related to existing technology, customer relationships, and trade name / trademarks, based on guidance for determining fair value under the provisions of ASC 820, "Fair Value Measurements." We amortize the intangible assets using the straight-line method over their estimated useful lives. Additionally, we have entered into license agreements for third-party technology and recorded them as intangible assets. These licenses are being amortized to Research and development expense over their estimated useful lives.

Our review of our strategic long-range plan completed at the end of fiscal 2024 concluded that the originally acquired Mirametrix intangible assets had limited future revenue potential due to a decline in customer demand, which we determined was an indicator of impairment. Our assessment of the fair value of these intangible assets concluded that they had been fully impaired as of December 28, 2024, and we recorded an impairment charge of $13.9 million for fiscal 2024 in the Consolidated Statements of Operations. No impairment charges relating to acquired intangible assets were recorded for fiscal 2023 or 2022.

The following tables summarize the details of our Intangible assets, net as of December 28, 2024 and December 30, 2023:

	December 28, 2024
(In thousands)	Weighted Average Amortization Period (in years)		Gross		Impairment			Accumulated Amortization			Intangible assets, net
Existing technology		—	$	124,487	$	(7,473	)	$	(117,014	)	$	—
Customer relationships		—		32,734		(5,425	)		(27,309	)		—
Trade name / trademarks		—		1,500		(1,031	)		(469	)		—
Licensed technology		5.4		9,366		—			(4,779	)		4,587
Total identified intangible assets			$	168,087	$	(13,929	)	$	(149,571	)	$	4,587

	December 30, 2023
(In thousands)	Weighted Average Amortization Period (in years)		Gross		Impairment		Accumulated Amortization			Intangible assets, net
Existing technology		5.1	$	124,487	$	—	$	(115,085	)	$	9,402
Customer relationships		6.1		32,734		—		(25,909	)		6,825
Trade name / trademarks		10.0		1,500		—		(319	)		1,181
Licensed technology		6.2		7,127		—		(3,561	)		3,566
Total identified intangible assets			$	165,848	$	—	$	(144,874	)	$	20,974

We recorded amortization expense related to intangible assets on the Consolidated Statements of Operations as presented in the following table:

	Year Ended
	December 28,		December 30,		December 31,
(In thousands)	2024		2023		2022
Research and development	$	1,218	$	1,074	$	1,054
Amortization of acquired intangible assets		3,479		3,478		3,778
	$	4,697	$	4,552	$	4,832

The annual expected amortization expense related to intangible assets is as follows:

Fiscal year	(In thousands)
2025	$	1,653
2026		1,641
2027		1,230
2028		63
Total	$	4,587

Goodwill

Goodwill represents the excess of the purchase price over the fair value of the underlying net tangible and intangible assets. The goodwill balance at December 28, 2024 is comprised of approximately $315.4 million from prior acquisitions. No impairment charges relating to goodwill were recorded for fiscal 2024, 2023, or 2022.