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Note 11 - Goodwill and Other Intangible Assets | 12 Months Ended
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Sep. 30, 2024
Notes to Financial Statements |
Goodwill and Intangible Assets Disclosure [Text Block] | 11. Goodwill and Other Intangible Assets At September 30, 2024, the Company had goodwill of $0.7 million and other intangible assets, net of $0.5 million attributable to its Adjacent Markets reporting unit and other intangible assets, net of $1.2 million attributable to its Oil and Gas Markets reporting unit. Goodwill represents the excess cost of a business acquired over the fair market value of identifiable net assets at the date of acquisition. At September 30, 2024, in light of the Company's historical losses and continued delays in obtaining additional contracts from the U.S. Customs and Border Protection and other customers on its Emerging Markets segment, the Company performed a recoverability assessment on the long-lived assets of its Emerging Markets asset group in which its carrying value was compared to estimated undiscounted cash flows over the remaining useful life of the asset group's primary asset, its developed technology. Accordingly, a fair value analysis was performed. Based on the assessment, the Company determined the fair value of the asset was less than its carrying value. The Company used an excess earnings approach to value the asset. Key assumptions used in the analysis include revenue, gross margin and cash flow projections. As a result of the assessment, the Company recorded an impairment charge of $2.8 million on this asset group, which impaired its intangible assets in their entirety. Also see Note 1 to these consolidated financial statements. The Company’s consolidated goodwill and other intangible assets consisted of the following (in thousands):
|  | Weighted-Average Remaining Useful Lives (in years) |  |  | AS OF SEPTEMBER 30, |
|  |  |  |  | 2024 |  |  | 2023 |
Goodwill: |  |  |  |  |  |  |  |  |  |  |
Emerging Markets reporting unit |  |  |  |  | $ | 4,336 |  |  | $ | 4,336 |
Adjacent Markets reporting unit |  |  |  |  |  | 736 |  |  |  | 736 |
Total goodwill |  |  |  |  |  | 5,072 |  |  |  | 5,072 |
Accumulated impairment losses |  |  |  |  |  | (4,336 | ) |  |  | (4,336 | )
|  |  |  |  | $ | 736 |  |  | $ | 736 |
Other intangible assets: |  |  |  |  |  |  |  |  |  |  |
Developed technology |  | 4.5 |  |  | $ | 2,275 |  |  | $ | 6,475 |
Customer relationships |  | — |  |  |  | 3,900 |  |  |  | 3,900 |
Trade names |  | 0.1 |  |  |  | 2,022 |  |  |  | 2,022 |
Non-compete agreements |  | 0.1 |  |  |  | 186 |  |  |  | 186 |
Total other intangible assets |  | 2.3 |  |  |  | 8,383 |  |  |  | 12,583 |
Accumulated amortization |  |  |  |  |  | (6,734 | ) |  |  | (7,778 | )
|  |  |  |  | $ | 1,649 |  |  | $ | 4,805 |
Other intangible assets amortization expense for fiscal years 2024 and 2023 was $0.4 million and $0.8 million, respectively. As of September 30, 2024, fiscal year future estimated amortization expense of other intangible assets is as follows (in thousands):
2025 |  |  | 148 |
2026 |  |  | 140 |
2027 |  |  | 126 |
2028 |  |  | 126 |
2029 |  |  | 126 |
Thereafter |  |  | 983 |
|  | $ | 1,649 |

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 30 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/350-30/tableOfContent Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 350 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/350-20/tableOfContent + Details
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