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Note 7 - Goodwill and Intangible Assets

6 Months Ended

Jul. 31, 2021

Goodwill and Intangible Assets Disclosure [Text Block]

7.	GOODWILL AND INTANGIBLE ASSETS

Goodwill

The changes in the carrying amounts of goodwill for the six months ended July 31, 2021 were as follows:

	Gross Carrying Amount			Accumulated Impairment			Goodwill, Net
	(in thousands)
Balance at January 31, 2021	$	40,944		$	(15,608	)	$	25,336
Additions		7,217			-			7,217
Impact of foreign currency translation		(355	)		-			(355	)
Balance at July 31, 2021	$	47,806		$	(15,608	)	$	32,198

The Company performed its annual goodwill impairment review during the fourth quarter of fiscal 2021. The analysis compared the Company’s market capitalization to its net assets as of the test date, November 30, 2020. As the market capitalization significantly exceeded the Company’s net assets, there was no indication of goodwill impairment for fiscal 2021. The Company monitors the indicators for goodwill impairment testing between annual tests. No adverse events occurred during the six months ended July 31, 2021 that would cause the Company to test goodwill for impairment.

Intangible Assets

	July 31, 2021			January 31, 2021
	(in thousands)
Amortizable intangible assets:
Customer relationships	$	8,039		$	3,039
Trade name		80			-
Impact of foreign currency translation		(62	)		-
Less accumulated amortization		(1,303	)		(681	)
Amortizable intangible assets, net	$	6,754		$	2,358

The Company’s intangible assets are related to acquisitions completed in the second and third quarters of fiscal 2019, the fourth quarter of fiscal 2021 and the first quarter of fiscal 2022. 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 $0.4 million and $0.6 million for the three and six months ended July 31, 2021, respectively; compared to $0.1 million for both the three and six months ended July 31, 2020. The following table summarizes the estimated amortization expense relating to the Company’s intangible assets as of July 31, 2021:

Fiscal Years	(in thousands)
2022 remaining	$	806
2022		1,611
2024		1,499
2025		1,348
Thereafter		1,490
	$	6,754