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Note 6 - Goodwill and Other Intangibles

9 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Text Block]

6. Goodwill and Other Intangibles

Goodwill

Goodwill represents the difference between the purchase price and the fair value of the identifiable tangible and intangible net assets when accounted for using the purchase method of accounting. The Company's goodwill balance relates to the Neeltran Acquisition in the current fiscal year, the NEPSI Acquisition in fiscal 2020, and the acquisition of Infinia Technology Corporation in fiscal 2017 and is reported in the Grid business segment. Goodwill is not amortized but reviewed for impairment. Goodwill is reviewed annually and whenever events or changes in circumstances indicate that the carrying value of the goodwill might not be recoverable.

The following table provides a roll forward of the changes in the Company's Grid business segment goodwill balance:

	*Goodwill*
March 31, 2021	$	34,634
Neeltran Acquisition		8,837
Less impairment loss		-
December 31, 2021	$	43,471

The Company did not identify any triggering events in the three and nine months ended December 31, 2021 that would require interim impairment testing of goodwill.

Other Intangibles

Intangible assets at December 31, 2021 and March 31, 2021 consisted of the following (in thousands):

	*December 31, 2021*							*March 31, 2021*
	*Gross Amount*		*Accumulated Amortization*			*Net Book Value*		*Gross Amount*		*Accumulated Amortization*			*Net Book Value*		*Estimated Useful Life*
Backlog	$	681	$	(614	)	$	67	$	600	$	(475	)	$	125		2
Trade name		1,800		—			1,800		600		—			600		Indefinite
Customer relationships		9,600		(2,217	)		7,383		6,100		(739	)		5,361		7
Core technology and know-how		5,970		(3,265	)		2,705		5,970		(2,903	)		3,067		5-10
Intangible assets	$	18,051	$	(6,096	)	$	11,955	$	13,270	$	(4,117	)	$	9,153

The Company recorded intangible amortization expense related to customer relationship and core technology and know-how of $0.6 million and $1.8 million, in the three and nine months ended December 31, 2021, respectively, and $0.4 million and $0.6 million in the three and nine months ended December 31, 2020, respectively. Additionally, the Company recorded intangible amortization related to backlog that is reported in cost of revenues of $0.1 million in each of the three and nine months ended December 31, 2021, respectively, and $0.3 million in each of the three and nine months ended December 31, 2020.

Expected future amortization expense related to intangible assets is as follows (in thousands):

Years ended March 31,	*Total*
2022		672
2023		2,772
2024		2,152
2025		1,648
2026		1,221
Thereafter		1,690
Total	$	10,155

The Company's intangible assets relate entirely to the Grid business segment operations in the United States.