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Note 8 - Goodwill and Intangible Assets

9 Months Ended

Jun. 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.

There were no additions to goodwill during the nine months ended June 30, 2022. During the year ended September 30, 2021, the Company added a total of $21,128 in goodwill related to the Zonehaven acquisition and the Amika Mobile asset purchase. As of June 30, 2022 and September 30, 2021, goodwill was $23,511 and $23,834, respectively. There were no impairments to goodwill during the nine months ended June 30, 2022 and 2021, respectively.

The changes in the carrying amount of goodwill by segment for the nine months ended June 30, 2022, were as follows:

	Hardware		Software			Total
Balance as of September 30, 2021	$	-	$	23,834		$	23,834
Currency translation		-		(323	)		(323	)
Balance as of June 30, 2022	$	-	$	23,511		$	23,511

Intangible assets and goodwill related to Genasys Spain are translated from Euros 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 $295. 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 period related to goodwill and intangible assets was a decrease of $113.

The changes in the carrying amount of intangible assets by segment for the nine months ended June 30, 2022, were as follows:

	Hardware			Software			Total
Balance as of September 30, 2021	$	25		$	12,779		$	12,804
Amortization		(3	)		(1,618	)		(1,621	)
Currency translation		-			(85	)		(85	)
Balance as of June 30, 2022	$	22		$	11,076		$	11,098

The Company’s consolidated intangible assets consisted of the following:

	June 30,			September 30,
	2022			2021
Technology	$	11,964		$	12,065
Customer relationships		1,789			1,855
Trade name portfolio		603			625
Non-compete agreements		220			244
Patents		72			72
		14,648			14,861
Accumulated amortization		(3,550	)		(2,057	)
	$	11,098		$	12,804

As of June 30, 2022, future amortization expense is as follows:

Fiscal year ending September 30,
2022 (remaining three months)		535
2023		2,112
2024		2,099
2025		1,983
2026		1,849
Thereafter		2,520
Total estimated amortization expense	$	11,098

Amortization expense was $537 and $295 for the three months ended June 30, 2022 and 2021, respectively, and $1,621 and $647 for the nine months ended June 30, 2022 and 2021, respectively.