Note 8 - Goodwill and Patents

3 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Goodwill and Intangible Assets Disclosure [Text Block]

Note

8.

Goodwill and Intangibles

The Company analyzes its goodwill for impairment annually or at an interim period when events occur or changes in circumstances indicate potential impairment. The result of the analysis performed as of

September 30, 2019

did

not

indicate an impairment of goodwill. During the

three

months ended

December 31, 2019,

there were

no

triggering events that indicate potential impairment exists.

The Company capitalizes legal costs incurred to obtain patents. Once accepted by either the U.S. Patent Office or the equivalent office of a foreign country, these legal costs are amortized using the straight-line method over the remaining estimated lives,

not

exceeding

20

years. As of

December 31, 2019,

the Company has

21

patents granted and multiple pending applications both inside and outside the United States.

In addition, the Company has various finite lived intangible assets, most of which were acquired as a result of the acquisition of the active cabinet product line from Calix, Inc. (“Calix”) during fiscal year

2018.

The Company analyzes its intangible assets for impairment annually or at interim periods when events occur or changes in circumstances indicate potential impairment. The result of the analysis performed as of

September 30, 2019

did

not

indicate an impairment of our intangible assets. During the

three

months ended

December 31, 2019,

there were

no

triggering events that indicate potential impairment exists.