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Note 8 - Goodwill and Intangible Assets

12 Months Ended

Sep. 30, 2023

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, 2023 and September 30, 2022, goodwill was $10,282 and $10,118 respectively. There were no impairments to goodwill during the year ended September 30, 2023.

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 an increase of $194.

The changes in the carrying amount of goodwill by segment for the year ended September 30, 2023, are as follows:

	Hardware		Software		Total
Balance as of September 30, 2022	$	-	$	10,118	$	10,118
Currency translation		-		164		164
Balance as of September 30, 2023	$	-	$	10,282	$	10,282

The Company’s intangible assets consisted of the following:

	September 30,
	2023			2022
Technology	$	11,930		$	11,886
Customer relationships		1,790			1,715
Trade name portfolio		605			590
Non-compete agreements		223			206
Patents		72			72
		14,620			14,469
Accumulated amortization		(6,193	)		(3,964	)
	$	8,427		$	10,505

The changes in the carrying amount of intangible assets by segment for the year ended September 30, 2023, are as follows:

	Hardware			Software			Total
Balance as of September 30, 2022	$	21		$	10,484		$	10,505
Amortization		(4	)		(2,104	)		(2,108	)
Currency translation		-			30			30
Balance as of September 30, 2023	$	17		$	8,410		$	8,427

	Years ended
	September 30,
	2023		2022
Amortization expense	$	2,108	$	2,154

Estimated amortization expense for the fiscal year ending September 30,

Fiscal year ending September 30,
2024	$	2,094
2025		1,977
2026		1,842
2027		1,669
2028		841
Thereafter		4
Total estimated amortization expense	$	8,427