Note 7 - Goodwill and Intangible Assets, Net

12 Months Ended

Dec. 31, 2022

Notes to Financial Statements

Intangible Assets Disclosure [Text Block]

NOTE 7: GOODWILL AND INTANGIBLE ASSETS, NET

(a) Goodwill:

Changes in goodwill are as follows:

	Year ended December 31,
	2021		2022
Balance as of January 1,	$	51,070	$	74,777
Acquisition		23,707		—
Balance as of December 31,	$	74,777	$	74,777

(b) Intangible assets:

			Year ended December 31, 2021								Year ended December 31, 2022
	Weighted average amortization period (years)		Gross carrying amount		Accumulated amortization		Net		Gross carrying amount		Accumulated amortization		Impairment (*)		Net
Intangible assets –amortizable:
Intangible assets related to the acquisition of Intrinsix business
Customer relationships		5.5	$	3,604	$	382	$	3,222	$	3,604	$	1,037	$	—	$	2,567
Customer backlog		1.5		421		164		257		421		421		—		—
Patents		5.0		218		26		192		218		69		—		149
Core technologies		3.0		3,329		647		2,682		3,329		1,757		—		1,572
Intangible assets related to the acquisition of Hillcrest Labs business
Customer relationships		4.4		3,518		2,130		1,388		3,518		2,998		—		520
Customer backlog		0.5		72		72		—		72		72		—		—
R&D Tools		7.5		2,475		810		1,665		2,475		1,140		—		1,335
Intangible assets related to Immervision assets acquisition
R&D Tools		6.4		7,063		2,679		4,384		7,063		3,507		3,556		—
Intangible assets related to an investment in NB-IoT technologies
NB-IoT technologies (**)		7.0		1,961		1,144		817		1,961		1,424		—		537
Total intangible assets			$	22,661	$	8,054	$	14,607	$	22,661	$	12,425	$	3,556	$	6,680

(*) During 2022, the Company recorded an impairment charge of $3,556 in operating expenses with respect to Immervision technology acquired in August 2019, as the Company has decided to cease the development of this product line.

(**) During the first quarter of 2018, the Company entered into an agreement to acquire certain NB-IoT technologies in the amount of $2,800, of which technologies valued at $600 have not been received and have been written off during 2022. Of the $2,200, $210 has not resulted in cash outflows as of December 31, 2022. In addition, the Company participated in programs sponsored by the Hong Kong government for the support of the above investment, and as a result, the Company received during 2019 an amount of $239 related to the NB-IoT technologies, which was reduced from the gross carrying amount of intangible assets. The Company recorded the amortization cost of the NB-IoT technologies in “cost of revenues” on the Company’s consolidated statements of income (loss).

Future estimated annual amortization charges are as follows:

2023		2,611
2024		1,909
2025		1,189
2026		956
2027		15
	$	6,680

The Company recorded amortization expense in the amount of $3,801 and $4,371 for the years ended December 31, 2021 and 2022, respectively.