Note 6 - Goodwill and Intangible Assets

9 Months Ended

Oct. 31, 2019

Notes to Financial Statements

Goodwill and Intangible Assets Disclosure [Text Block]

6. GOODWILL AND INTANGIBLE ASSETS

Goodwill

The changes in the carrying amount of goodwill for the

nine

months ended

October 31, 2019

were as follows:

	Gross Carrying Amount			Accumulated Impairment			Goodwill, Net
	(in thousands)
Balance at January 31, 2019	$	28,031		$	(15,608	)	$	12,423
Impact of foreign currency translation		(32	)		-			(32	)
Balance at October 31, 2019	$	27,999		$	(15,608	)	$	12,391

The Company performed its annual goodwill impairment review during the

fourth

quarter of fiscal

2019.

The analysis compared the Company’s market capitalization to its net assets as of the test date,

November 30, 2018.

As the market capitalization significantly exceeded the Company’s net assets, there was

no

indication of goodwill impairment for fiscal

2019.

The Company monitors the indicators for goodwill impairment testing between annual tests.

No

adverse events occurred during the

nine

months ended

October 31, 2019 

that would cause the Company to test goodwill for impairment.

Intangible Assets

	October 31, 2019			January 31, 2019
	(in thousands)
Amortizable intangible assets:
Customer relationships	$	1,348		$	1,348
Less accumulated amortization		(318	)		(115	)
Amortizable intangible assets, net	$	1,030		$	1,233

The Company’s intangible assets as of

October 31, 2019

are related to the acquisitions completed in the

second

and

third

quarters of fiscal

2019.

Intangible assets are included in “Other assets, net” in the accompanying Condensed Consolidated Balance Sheets, and are amortized over an estimated

five

year useful life.

Amortization of intangibles from acquisitions was

$67,000

and

$200,000

for the

third

quarter and

first

nine

months of fiscal

2020,

respectively, compared to

$45,000

for both the

third

quarter and

nine

months ended

October 31, 2018.

The following table summarizes the future amortization expense relating to the Company’s intangible assets as of

October 31, 2019:

Fiscal Years	(in thousands)
2020 remaining	$	67
2021		270
2022		270
2023		270
Thereafter		153
	$	1,030