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Note 8 - Goodwill and Intangible Assets | 12 Months Ended
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Sep. 30, 2022
Notes to Financial Statements |
Goodwill and Intangible Assets Disclosure [Text Block] | 8. GOODWILL AND INTANGIBLE ASSETS Goodwill is attributable to the acquisitions of Genasys Spain and Zonehaven, and the Amika Mobile asset purchase and is due to combining the integrated emergency critical communications, mass messaging solutions and software development capabilities with existing hardware products for enhanced offerings and the skill level of the acquired workforces. The Company periodically reviews goodwill for impairment in accordance with relevant accounting standards. In the fourth quarter of fiscal 2022, in conjunction with the annual impairment assessment, the Company determined that the fair value of the software reporting unit was less than the carrying value. The Company engaged independent valuation experts to assist in determining the fair value of the software reporting unit and recorded a $13,162 goodwill impairment charge. As of September 30, 2022 and September 30, 2021, goodwill was $10,118 and $23,834 respectively. There were no impairments to goodwill during the year ended September 30, 2021. Intangible assets and goodwill related to Genasys Spain are translated from Euro to U.S. dollars at the balance sheet date. The net impact of foreign currency exchange differences arising during the period related to goodwill and intangible assets was a decrease of $458. Intangible assets and goodwill related to Amika Mobile are translated from Canadian dollars to U.S. dollars at the balance sheet date. The net impact of foreign currency exchange differences arising during the year ended September 30, 2022, related to goodwill and intangible assets from the Amika Mobile asset purchase was a decrease of $241. The changes in the carrying amount of goodwill by segment for the year ended September 30, 2022, are as follows:
|  | Hardware |  |  | Software |  |  | Total |
Balance as of September 30, 2021 |  | $ | - |  |  | $ | 23,834 |  |  | $ | 23,834 |
Impairment |  |  | - |  |  |  | (13,162 | ) |  |  | (13,162 | )
Currency translation |  |  | - |  |  |  | (554 | ) |  |  | (554 | )
Balance as of September 30, 2022 |  | $ | - |  |  | $ | 10,118 |  |  | $ | 10,118 |
The Company’s intangible assets consisted of the following:
|  | September 30, |
|  | 2022 |  |  | 2021 |
Technology |  | $ | 11,886 |  |  | $ | 12,065 |
Customer relationships |  |  | 1,715 |  |  |  | 1,855 |
Trade name portfolio |  |  | 590 |  |  |  | 625 |
Non-compete agreements |  |  | 206 |  |  |  | 244 |
Patents |  |  | 72 |  |  |  | 72 |
|  |  | 14,469 |  |  |  | 14,861 |
Accumulated amortization |  |  | (3,964 | ) |  |  | (2,057 | )
|  | $ | 10,505 |  |  | $ | 12,804 |
The changes in the carrying amount of intangible assets by segment for the year ended September 30, 2022, are as follows:
|  | Hardware |  |  | Software |  |  | Total |
Balance as of September 30, 2021 |  | $ | 25 |  |  | $ | 12,779 |  |  | $ | 12,804 |
Amortization |  |  | (4 | ) |  |  | (2,150 | ) |  |  | (2,154 | )
Currency translation |  |  | - |  |  |  | (145 | ) |  |  | (145 | )
Balance as of September 30, 2022 |  | $ | 21 |  |  | $ | 10,484 |  |  | $ | 10,505 |
|  | Years ended |
|  | September 30, |
|  | 2022 |  |  | 2021 |
Amortization expense |  | $ | 2,154 |  |  | $ | 1,191 |
Estimated amortization expense for the fiscal year ending September 30,
2023 |  | $ | 2,094 |
2024 |  |  | 2,083 |
2025 |  |  | 1,974 |
2026 |  |  | 1,843 |
2027 |  |  | 1,669 |
Thereafter |  |  | 842 |
Total estimated amortization expense |  | $ | 10,505 |

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI https://asc.fasb.org/topic&trid=2144416 + Details
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