Note 8 - Intangible Assets

6 Months Ended

Jul. 03, 2021

Notes to Financial Statements

Intangible Assets Disclosure [Text Block]

8. Intangible Assets

The Company evaluates long-lived assets and intangible assets with definite lives for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. When the Company determines that it is probable that undiscounted future cash flows will not be sufficient to recover an asset’s carrying amount, the asset is written down to its fair value. Assets to be disposed of by sale, if any, are reported at the lower of the carrying amount or fair value less cost to sell. The Company’s intangible assets consist of customer relationships and non-compete agreements. During the twenty-six week period ended July 3, 2021, the Company reviewed the carrying value of its intangible assets due to the events and circumstances surrounding the COVID-19 pandemic. While COVID-19 has negatively impacted the Company, and the Company expects this negative impact to continue at least through the second half of fiscal 2021 and possibly beyond, the Company does not believe at this time that this negative impact is permanent. As such, no impairment loss on the Company’s intangible assets during the twenty-six week period ended July 3, 2021 was recorded as a result of such review.

All of the Company’s intangible assets are associated with the Engineering segment.  Intangible assets other than goodwill are amortized over their useful lives.  Intangible assets are carried at cost, less accumulated amortization.

Details of intangible assets by class at July 3, 2021 and January 2, 2021:

	July 3, 2021		January 2, 2021
Restricted covenants	$	4	$	12
Customer relationships		2		83
Total intangible assets	$	6	$	95

Amortization expense of acquired intangible assets for the twenty-six week periods ended July 3, 2021 and June 27, 2020 was $89 and $160, respectively. Amortization expense of intangible assets for the thirteen week periods ended July 3, 2021 and June 27, 2020 was $9 and $80, respectively.