Note 4 - Goodwill and Intangible Assets

6 Months Ended

Jun. 30, 2021

Notes to Financial Statements

Goodwill and Intangible Assets Disclosure [Text Block]

(4) GOODWILL AND INTANGIBLE ASSETS

We have two operating segments which are also our reporting units: Thermal and EMS. Goodwill and intangible assets on our balance sheets are the result of our acquisitions of Sigma Systems Corp. ("Sigma") in October 2008, Thermonics, Inc. ("Thermonics") in January 2012 and Ambrell in May 2017. All our goodwill and intangible assets are allocated to our Thermal segment.

Goodwill

Goodwill totaled $13,738 at both June 30, 2021 and December 31, 2020 and was comprised of the following:

Sigma	$	1,656
Thermonics		50
Ambrell		12,032
Total	$	13,738

Intangible Assets

Changes in the amount of the carrying value of finite-lived intangible assets for the six months ended June 30, 2021 are as follows:

Balance - January 1, 2021	$	5,711
Amortization		(609	)
Balance June 30, 2021	$	5,102

The following tables provide further detail about our intangible assets as of June 30, 2021 and December 31, 2020:

	June 30, 2021
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Finite-lived intangible assets:
Customer relationships	$	10,480	$	5,474	$	5,006
Technology		600		516		84
Patents		590		578		12
Software		270		270		-
Trade name		140		140		-
Total finite-lived intangible assets		12,080		6,978		5,102
Indefinite-lived intangible assets:
Trademarks		6,710		-		6,710
Total intangible assets	$	18,790	$	6,978	$	11,812

	December 31, 2020
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Finite-lived intangible assets:
Customer relationships	$	10,480	$	4,912	$	5,568
Technology		600		477		123
Patents		590		570		20
Software		270		270		-
Trade name		140		140		-
Total finite-lived intangible assets		12,080		6,369		5,711
Indefinite-lived intangible assets:
Trademarks		6,710		-		6,710
Total intangible assets	$	18,790	$	6,369	$	12,421

We generally amortize our finite-lived intangible assets over their estimated useful lives on a straight-line basis, unless an alternate amortization method can be reliably determined. Any such alternate amortization method would be based on the pattern in which the economic benefits of the intangible asset are expected to be consumed. None of our intangible assets have any residual value.

Total amortization expense for our finite-lived intangible assets was $305 and $609 for the three months and six months ended June 30, 2021, respectively, and $309 and $620 for the three months and six months ended June 30, 2020, respectively. The following table sets forth the estimated annual amortization expense for each of the next five years:

2021 (remainder)	$	618
2022	$	1,167
2023	$	1,067
2024	$	980
2025	$	905