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Note 6 - Goodwill and Other Intangibles

6 Months Ended

Sep. 30, 2022

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 fiscal 2021, 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
March 31, 2022	$	43,471
Less impairment loss		-
September 30, 2022	$	43,471

The Company did not identify any triggering events in the three and six months ended September 30, 2022 that would require interim impairment testing of goodwill.

Other Intangibles

Intangible assets at September 30, 2022 and March 31, 2022 consisted of the following (in thousands):

	September 30, 2022							March 31, 2022
	Gross Amount		Accumulated Amortization			Net Book Value		Gross Amount		Accumulated Amortization			Net Book Value		Estimated Useful Life
Licenses	$	3,610	$	(3,610	)		—	$	3,610	$	(3,610	)		—		7
Backlog	$	681	$	(668	)	$	13	$	681	$	(631	)	$	50		2
Trade name and trademarks		1,800		—			1,800		1,800		—			1,800	Indefinite
Customer relationships		9,600		(3,845	)		5,755		9,600		(2,723	)		6,877		7
Core technology and know-how		5,970		(3,627	)		2,343		5,970		(3,386	)		2,584		5-10
Intangible assets	$	21,661	$	(11,750	)	$	9,911	$	21,661	$	(10,350	)	$	11,311

The Company recorded intangible amortization expense related to customer relationship and core technology and know-how of $0.7 million and $1.4 million, in the three and six months ended September 30, 2022, respectively, and $0.6 million and $1.2 million in the three and six months ended September 30, 2021, respectively. Additionally, the Company recorded no intangible amortization related to backlog in the three months ended September 30, 2022 and the Company recorded less than $0.1 million related to backlog that is reported in cost of revenues in the six months ended September 30, 2022. The Company recorded intangible amortization related to backlog that is reported in cost of revenues of less than $0.1 million and $0.1 million in the three and six months ended September 30, 2021, respectively.

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

Years ended March 31,	*Total*
2023		1,384
2024		2,158
2025		1,648
2026		1,221
2027		1,085
Thereafter		615
Total	$	8,111

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