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Note 11 - Acquisition of Businesses | 3 Months Ended
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Mar. 31, 2023
Notes to Financial Statements |
Business Combination Disclosure [Text Block] | NOTE 11 – Acquisition of Businesses: Guardian Products, Inc. On May 1, 2022, the Company, through BAMKO, acquired substantially all of the assets of Guardian Products, Inc. (“Guardian”) of Norcross, Georgia. Guardian is a branded merchandise company that is one of the leading providers of promotional products to automotive dealers nationwide. The purchase price for the acquisition consisted of the following: (a) $11.1 million in cash, (b) the issuance of 116,550 restricted shares of Superior’s common stock (the “Guardian Stock”) that vest ratably over a three-year period, and (c) estimated potential future payments of approximately $2.3 million in additional contingent consideration based on the results of the acquired business through April 2025. The Guardian Stock is subject to transfer restrictions over the three-year period following the closing of the acquisition. Fair Value of Consideration Transferred A summary of the purchase price is as follows (in thousands):
Cash consideration |  | $ | 11,077 |
Restricted shares of Superior common stock issued |  |  | 2,000 |
Contingent consideration |  |  | 1,119 |
Total Consideration |  | $ | 14,196 |
Assets Acquired and Liabilities Assumed The following table presents the allocation of the total fair value of consideration transferred, as shown above, to the acquired tangible and intangible assets and liabilities of Guardian based on their estimated fair values as of the effective date of the transaction (in thousands):
Accounts receivable |  | $ | 1,656 |
Inventories |  |  | 621 |
Prepaid expenses and other current assets |  |  | 272 |
Property, plant and equipment |  |  | 15 |
Intangible assets |  |  | 5,886 |
Goodwill |  |  | 6,463 |
Total assets |  | $ | 14,913 |
Accounts payable |  |  | 533 |
Other current liabilities |  |  | 184 |
Total liabilities |  | $ | 717 |
The Company recorded $5.9 million in identifiable intangibles at fair value, consisting of $5.0 million in acquired customer relationships, $0.2 million for a non-compete agreement and $0.7 million for the Guardian Products trade name. The intangible assets associated with the customer relationships are being amortized for seven years, the non-compete agreement is being amortized for five years and the trade name is being amortized for two years. The difference between the fair value of the consideration transferred and the values assigned to the assets acquired and liabilities assumed was recorded as goodwill, which is primarily attributed to the assembled workforce and expanded market opportunities. The acquisition of Guardian was treated as an asset purchase for income tax purpose, and therefore, the resulting goodwill from this acquisition is deductible for U.S. income tax purposes. The goodwill associated with the Guardian acquisition was fully impaired during the year ended December 31, 2022 as a result of the Company’s goodwill impairment test performed during the third quarter of 2022, which was triggered by the depressed market price of the Company's common stock and corresponding significant decline in the Company’s market capitalization.

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