Goodwill and Intangible Assets

3 Months Ended

Dec. 31, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

9. GOODWILL AND INTANGIBLE ASSETS

Goodwill is attributable to the acquisitions of Genasys Spain, Zonehaven, Evertel, and the Amika Mobile asset purchase and is due to combining the integrated critical communications, mass messaging solutions and software development capabilities with existing hardware products for enhanced offerings and the skill level of the acquired workforces. The Company periodically reviews goodwill for impairment in accordance with relevant accounting standards. As of December 31, 2024 and September 30, 2024, goodwill was $13,165 and $13,329, respectively. There were no additions or impairments to goodwill during the three months ended December 31, 2024. During the three months ended December 31, 2023, $2,772 was added to goodwill as a result of the Evertel acquisition.

The changes in the carrying amount of goodwill by segment as of December 31, 2024, were as follows:


	Hardware		Software			Total
Balance as of September 30, 2024	$	—	$	13,329		$	13,329
Acquisitions		—		—			—
Currency translation		—		(164	)		(164	)
Balance as of December 31, 2024	$	—	$	13,165		$	13,165

The changes in the carrying amount of intangible assets by segment as of December 31, 2024, were as follows:


	Hardware		Software			Total
Balance as of September 30, 2024	$	14	$	8,492		$	8,506
Acquisitions		—		—			—
Amortization		—		(618	)		(618	)
Currency translation		—		(3	)		(3	)
Balance as of December 31, 2024	$	14	$	7,871		$	7,885

Intangible assets and goodwill related to Genasys Spain are translated from Euros to U.S. dollars at the balance sheet date. The net impact of foreign currency exchange differences arising during the period related to goodwill and intangible assets was a decrease of $167.

The Company’s consolidated intangible assets consisted of the following:


	December 31, 2024			September 30, 2024
Technology	$	14,209		$	14,252
Customer relationships		2,040			2,081
Trade name portfolio		602			617
Patents		72			72
		16,923			17,022
Accumulated amortization		(9,038	)		(8,516	)
	$	7,885		$	8,506

As of December 31, 2024, future amortization expense is as follows:


Fiscal year ending September 30,
2025 (remaining nine months)		1,737
2026		2,222
2027		2,048
2028		1,220
2029		329
Thereafter		329
Total estimated amortization expense	$	7,885

Amortization expense was $618 and $619 for the three months ended December 31, 2024 and 2023, respectively.