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Note 5 - Goodwill and Other Intangibles

9 Months Ended

Dec. 31, 2023

Goodwill and Intangible Assets Disclosure [Text Block]

5. 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. Goodwill is not amortized but reviewed for impairment. Goodwill is reviewed annually on February 28th and whenever events or changes in circumstances indicate that the carrying value of the goodwill might not be recoverable.

There were no changes to goodwill during the nine months ended December 31, 2023 or year ended March 31, 2023.

The Company did not identify any triggering events in the three and nine months ended December 31, 2023 that would require interim impairment testing of goodwill.

Other Intangibles

Intangible assets at December 31, 2023 and March 31, 2023 consisted of the following (in thousands):

	*December 31, 2023*							*March 31, 2023*
	*Gross Amount*		*Accumulated Amortization*			*Net Book Value*		*Gross Amount*		*Accumulated Amortization*			*Net Book Value*		*Estimated Useful Life*
Backlog		681		(681	)		—		681		(675	)	$	6		2
Trade name and trademarks		1,800		—			1,800		1,800		—			1,800	Indefinite
Customer relationships		9,600		(6,232	)		3,368		9,600		(4,980	)		4,620		7
Core technology and know-how		5,970		(4,231	)		1,739		5,970		(3,869	)		2,101		5-10
Intangible assets	$	18,051	$	(11,144	)	$	6,907	$	18,051	$	(9,524	)	$	8,527

The Company recorded intangible amortization expense related to customer relationship and core technology and know-how of $0.5 million and $1.6 million, in the three and nine months ended December 31, 2023, respectively, and $0.7 million and $2.1 million in the three and nine months ended December 31, 2022, respectively. Additionally, the Company recorded no intangible amortization related to backlog that is reported in cost of revenues in the three months ended December 31, 2023 and less than $0.1 million in the nine months ended December 31, 2023. The Company recorded less than $0.1 million related to backlog that is reported in cost of revenues in the three and nine months ended December 31, 2022, respectively.

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

Years ending March 31,	*Total*
2024		538
2025		1,648
2026		1,221
2027		1,085
2028		543
Thereafter		72
Total	$	5,107

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