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Note 9 - Goodwill and Intangible Assets

9 Months Ended

Jun. 30, 2024

Goodwill and Intangible Assets Disclosure [Text Block]

9. GOODWILL AND INTANGIBLE ASSETS

Goodwill is attributable to the acquisitions of Genasys Spain, Zonehaven, Evertel, and the Amika Mobile asset purchase and is due to combining the integrated 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. As of June 30, 2024 and September 30, 2023, goodwill was $13,235 and $10,282, respectively. During the nine months ended June 30, 2024, $2,923 was added to goodwill as a result of the Evertel acquisition. There were no additions or impairments to goodwill during the twelve months ended September 30, 2023.

The changes in the carrying amount of goodwill by segment as of June 30, 2024, were as follows:

	Hardware		Software		Total
Balance as of September 30, 2023	$	-	$	10,282	$	10,282
Acquisitions		-		2,923		2,923
Currency translation		-		30		30
Balance as of June 30, 2024	$	-	$	13,235	$	13,235

The changes in the carrying amount of intangible assets by segment as of June 30, 2024, were as follows:

	Hardware			Software			Total
Balance as of September 30, 2023	$	17		$	8,410		$	8,427
Acquisitions		-			2,550			2,550
Amortization		(2	)		(1,856	)		(1,858	)
Currency translation		-			4			4
Balance as of June 30, 2024	$	15		$	9,108		$	9,123

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 an increase of $34.

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

	June 30,			September 30,
	2024			2023
Technology	$	14,228		$	11,930
Customer relationships		2,058			1,790
Trade name portfolio		608			605
Non-compete agreements		226			223
Patents		72			72
		17,192			14,620
Accumulated amortization		(8,069	)		(6,193	)
	$	9,123		$	8,427

As of June 30, 2024, future amortization expense is as follows:

Fiscal year ending September 30,
2024 (remaining three months)		618
2025		2,357
2026		2,222
2027		2,048
2028		1,220
Thereafter		658
Total estimated amortization expense	$	9,123

Amortization expense was $619 and $525 for the three months ended June 30, 2024 and 2023, respectively. Amortization expense was $1,858 and $1,583 for the nine months ended June 30, 2024 and 2023, respectively.