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Note 6 - Goodwill and Other Intangibles

6 Months Ended

Sep. 30, 2024

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. Goodwill is not amortized but reviewed for impairment. The Company's goodwill balance relates to the Megatran Acquisition in fiscal 2024, the Neeltran acquisition in fiscal 2021, the Northeast Power Systems, Inc. ("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 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 year ended March 31, 2024.

	*Goodwill*
March 31, 2024	$	43,471
Megatran Acquisition		5,479
September 30, 2024	$	48,950

The Company did not record impairment in the three and six months ended September 30, 2024 that would require interim impairment testing of goodwill.

Other Intangibles

Intangible assets at September 30, 2024 and March 31, 2024 consisted of the following (in thousands):

	*September 30, 2024*							*March 31, 2024*
	*Gross Amount*		*Accumulated Amortization*			*Net Book Value*		*Gross Amount*		*Accumulated Amortization*			*Net Book Value*		*Estimated Useful Life*
Backlog		1,381		(856	)		525		681		(681	)		—		2
Trade name and trademarks		1,800		—			1,800		1,800		—			1,800	Indefinite
Customer relationships		10,880		(7,253	)		3,627		9,600		(6,649	)		2,951		7-10
Core technology and know-how		5,970		(4,593	)		1,377		5,970		(4,352	)		1,618		5-10
Intangible assets	$	20,031	$	(12,702	)	$	7,329	$	18,051	$	(11,682	)	$	6,369

The Company recorded intangible amortization expense related to customer relationship and core technology and know-how of $0.4 million and $0.8 million in the three and six months ended September 30, 2024, respectively. The Company recorded intangible amortization expense related to customer relationship and core technology and know-how of $0.5 million and $1.1 million in the three and six months ended September 30, 2023, respectively. The Company recorded $0.2 million of intangible amortization in cost of revenue related to backlog during both the three and six months ended September 30, 2024. The Company recorded no amortization expense related to backlog during the three months ended September 30, 2023 and less than $0.1 million related to backlog was reported in cost of revenues during the six months ended September 30, 2023.

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

Years ending March 31,	*Total*
2025		1,413
2026		1,349
2027		1,213
2028		671
2029		201
Thereafter		682
Total	$	5,529

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