XML 29 R14.htm IDEA: XBRL DOCUMENT
v3.25.0.1

Note 5 - Goodwill and Intangible Assets | 12 Months Ended
--- | ---
Dec. 31, 2024
Notes to Financial Statements |
Goodwill and Intangible Assets Disclosure [Text Block] |
(5) | GOODWILL AND INTANGIBLE ASSETS
We have three operating segments which are also our reporting units: Electronic Test, Environmental Technologies and Process Technologies. Goodwill and intangible assets on our balance sheets are the result of our acquisitions. Goodwill Changes in the amount of the carrying value of goodwill for the years ended December 31, 2024 and 2023 are as follows:
(in thousands) |  |  |  |
Balance - January 1, 2023 |  | $ | 21,605 |
Impact of foreign currency translation adjustments |  |  | 123 |
Balance - December 31, 2023 |  | $ | 21,728 |
Alfamation acquisition (Electronic Test segment) |  |  | 9,883 |
Impact of foreign currency translation adjustments (all goodwill) |  |  | (867 | )
Balance - December 31, 2024 |  | $ | 30,744 |
Goodwill was comprised of the following:
|  | December 31, |
(in thousands) |  | 2024 |  |  | 2023 |
Electronic Test |  | $ | 12,567 |  |  | $ | 3,436 |
Environmental Technologies |  |  | 1,817 |  |  |  | 1,817 |
Process Technologies |  |  | 16,360 |  |  |  | 16,475 |
Total Goodwill |  | $ | 30,744 |  |  | $ | 21,728 |
Intangible Assets Changes in the amount of the carrying value of indefinite-lived intangible assets for the year ended December 31, 2024 and 2023 are as follows:
(in thousands) |  |  |  |
Balance - January 1, 2023 |  | $ | 8,369 |
Impact of foreign currency translation adjustments |  |  | 29 |
Balance - December 31, 2023 |  |  | 8,398 |
Alfamation acquisition |  |  | 1,967 |
Impact of foreign currency translation adjustments |  |  | (190 | )
Balance - December 31, 2024 |  | $ | 10,175 |
Changes in the amount of the carrying value of finite-lived intangible assets for the years ended December 31, 2024 and 2023 are as follows:
(in thousands) |  |  |  |
Balance - January 1, 2023 |  | $ | 10,190 |
Impact of foreign currency translation adjustments |  |  | 102 |
Amortization |  |  | (2,094 | )
Balance - December 31, 2023 |  |  | 8,198 |
Alfamation™ acquisition |  |  | 11,365 |
Impact of foreign currency translation adjustments |  |  | (817 | )
Amortization |  |  | (2,545 | )
Balance - December 31, 2024 |  | $ | 16,201 |
The following tables provide further detail about our intangible assets at December 31, 2024 and 2023:
|  | December 31, 2024 |
(in thousands) |  | Gross Carrying Amount |  |  | Accumulated Amortization |  |  | Net Carrying Amount |
Finite-lived intangible assets: |  |  |  |  |  |  |  |  |  |  |  |
Customer relationships |  | $ | 23,912 |  |  | $ | 11,496 |  |  | $ | 12,416 |
Technology |  |  | 5,786 |  |  |  | 2,001 |  |  |  | 3,785 |
Patents |  |  | 590 |  |  |  | 590 |  |  |  | - |
Backlog |  |  | 481 |  |  |  | 481 |  |  |  | - |
Software |  |  | 270 |  |  |  | 270 |  |  |  | - |
Trade name |  |  | 140 |  |  |  | 140 |  |  |  | - |
Total finite-lived intangible assets |  |  | 31,179 |  |  |  | 14,978 |  |  |  | 16,201 |
Indefinite-lived intangible assets: |  |  |  |  |  |  |  |  |  |  |  |
Trademarks |  |  | 10,175 |  |  |  |  |  |  |  | 10,175 |
Total intangible assets |  | $ | 41,354 |  |  | $ | 14,978 |  |  | $ | 26,376 |
|  | December 31, 2023 |
(in thousands) |  | Gross Carrying Amount |  |  | Accumulated Amortization |  |  | Net Carrying Amount |
Finite-lived intangible assets: |  |  |  |  |  |  |  |  |  |  |  |
Customer relationships |  | $ | 16,407 |  |  | $ | 9,687 |  |  | $ | 6,720 |
Technology |  |  | 2,895 |  |  |  | 1,417 |  |  |  | 1,478 |
Patents |  |  | 590 |  |  |  | 590 |  |  |  | - |
Backlog |  |  | 499 |  |  |  | 499 |  |  |  | - |
Software |  |  | 270 |  |  |  | 270 |  |  |  | - |
Trade name |  |  | 140 |  |  |  | 140 |  |  |  | - |
Total finite-lived intangible assets |  |  | 20,801 |  |  |  | 12,603 |  |  |  | 8,198 |
Indefinite-lived intangible assets: |  |  |  |  |  |  |  |  |  |  |  |
Trademarks |  |  | 8,398 |  |  |  |  |  |  |  | 8,398 |
Total intangible assets |  | $ | 29,199 |  |  | $ | 12,603 |  |  | $ | 16,596 |
We generally amortize our finite-lived intangible assets over their estimated useful lives based on the pattern in which the economic benefits of the intangible assets are expected to be consumed, or on a straight-line basis, if an alternate amortization method cannot be reliably determined. Any such alternate amortization method would be based on the pattern in which the economic benefits of the intangible asset are expected to be consumed. None of our intangible assets have any residual value. The following table sets forth the estimated annual amortization expense for each of the next five years and thereafter at December 31, 2024:
(in thousands) |  |  |  |
2025 |  | $ | 3,184 |
2026 |  |  | 2,393 |
2027 |  |  | 1,855 |
2028 |  |  | 1,531 |
2029 |  |  | 1,227 |
Thereafter |  |  | 6,011 |
Total estimated amortization of finite-lived intangible assets |  | $ | 16,201 |
Impairment of Goodwill and Indefinite Life Intangible Assets During October 2024 and 2023, we assessed our goodwill and indefinite life intangible asset for impairment in accordance with the requirements of ASC 350 using a quantitative approach. Our goodwill impairment assessment is based upon the income approach, which estimates the fair value of our reporting units based upon a discounted cash flow approach. This fair value is then reconciled to our market capitalization at year end with an appropriate control premium. The discount rate used in 2024 for the discounted cash flows ranged between 19.5% and 20.5% depending on the reporting unit. The discount rate used in 2023 for the discounted cash flows ranged between 14.5% and 16.0% depending on the reporting unit. The selection of the rates in each year was based upon our analysis of market-based estimates of capital costs and discount rates. The determination of the fair value of our reporting units requires management to make significant estimates and assumptions including the selection of control premiums, discount rates, terminal growth rates, forecasts of revenue and expense growth rates, income tax rates, changes in working capital, depreciation, amortization and capital expenditures. Changes in assumptions concerning future financial results or other underlying assumptions could have a significant impact on either the fair value of the reporting unit or the amount of the goodwill impairment charge. During the goodwill impairment assessment in both 2024 and 2023, we compared the fair value of our reporting units with their carrying values. This assessment indicated no impairment existed as the fair value of the reporting units exceeded their carrying values in both 2024 and 2023. During the indefinite life intangible asset impairment assessment in both 2024 and 2023, we compared the fair value of our indefinite life intangible assets with their carrying values. This assessment indicated no impairment existed as the fair value of the indefinite life intangible assets exceeded their carrying values in both 2024 and 2023. Impairment of Long-Lived Assets and Finite-lived Intangible Assets During 2024 and 2023, we did not review any of our long-lived assets for impairment as there were no events or changes in business circumstances that would indicate an impairment might exist.

X
- References No definition available. + Details
Name: | us-gaap_DisclosureTextBlockAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration