Note 6 - Goodwill and Intangible Assets

6 Months Ended

Jul. 31, 2020

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 six months ended July 31, 2020 were as follows:

	Gross Carrying Amount			Accumulated Impairment			Goodwill, Net
	(in thousands)
Balance at January 31, 2020	$	27,996		$	(15,608	)	$	12,388
Impact of foreign currency translation		(37	)		-			(37	)
Balance at July 31, 2020	$	27,959		$	(15,608	)	$	12,351

The Company performed its annual goodwill impairment review during the fourth quarter of fiscal 2020. The analysis compared the Company’s market capitalization to its net assets as of the test date, November 30, 2019. As the market capitalization significantly exceeded the Company’s net assets, there was no indication of goodwill impairment for fiscal 2020. The Company monitors the indicators for goodwill impairment testing between annual tests. As a result of the decline in the global economy due to the global coronavirus (COVID-19) pandemic, the Company reviewed goodwill for impairment in the second quarter and given the Company's market capitalization has remained unchanged, goodwill is not impaired.

Intangible Assets

	July 31, 2020			January 31, 2020
	(in thousands)
Amortizable intangible assets:
Customer relationships	$	1,299		$	1,379
Less accumulated amortization		(501	)		(394	)
Amortizable intangible assets, net	$	798		$	985

The Company’s intangible assets 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 intangible assets from acquisitions was $0.1 million for both the three and six months ended July 31, 2020 and 2019. The following table summarizes the estimated amortization expense relating to the Company’s intangible assets as of July 31, 2020:

Fiscal Years	(in thousands)
2021 remaining	$	130
2022		260
2023		260
2024		148
Thereafter		-
	$	798