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Note 8 - Goodwill and Intangible Assets

12 Months Ended

Sep. 30, 2022

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