Intangible Assets and Goodwill

12 Months Ended

Sep. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets and Goodwill

Intangible Assets and Goodwill

Intangible assets arose from the acquisition of SDI in 2019 and the acquisitions of S&N and EMCORE Chicago in the current fiscal year and are reported within the A&D segment. Intangible assets are amortized on a straight-line basis over the estimated useful life of: (a) 7.0 years for patents (b) 8.0 years for customer relationships, and (c) 2.0-8.0 years for technology.IPR&D is indefinite-lived until completion of the related development project, at which point amortization of the carrying value of the technology will commence. Trademarks are indefinite-lived.

The following table summarizes changes in intangible assets, net:

	Year Ended September 30,
(in thousands)	2022		2021
Balance at beginning of period	$	167	$	202
Additions from acquisition	14,740		—
Amortization	(117)		(35)
Balance at end of period	$	14,790	$	167

The weighted average remaining useful lives by definite-lived intangible asset category are as follows:

(in thousands, except weighted average remaining life)	Year Ended September 30, 2022
	Weighted Average Remaining Life (in years)	Gross Carrying Amount		Accumulated Amortization		Net Book Value
Technology	5.4	$	10,991	$	(8,261)	$	2,730
Customer relationships	4.6	3,260		(50)		3,210
Definite-lived intangible assets total		$	14,251	$	(8,311)	$	5,940

As of September 30, 2022 IPR&D and trademarks was approximately $6.7 million and $2.2 million, respectively.

(in thousands, except weighted average remaining life)	Year Ended September 30, 2021
	Weighted Average Remaining Life (in years)	Gross Carrying Amount		Accumulated Amortization		Net Book Value
Technology	4.7	$	8,361	$	(8,194)	$	167

Estimated future amortization expense for intangible assets recorded by the Company at September 30, 2022 is as follows:

(in thousands)	Amount
2023	$	1,057
2024	1,038
2025	1,011
2026	609
2027	586
Thereafter	1,639
Total amortization expense	$	5,940

Goodwill is recorded when the consideration for an acquisition exceeds the fair value of net tangible and identifiable intangible assets acquired. $17.8 million of the Company's goodwill of $17.9 million relates to the recent S&N and EMCORE Chicago acquisitions and are within the A&D segment. None of the Company's goodwill is deductible for tax purposes. The following table summarizes changes in goodwill:

	Year Ended September 30,
(in thousands)	2022		2021
Balance at beginning of period	$	69	$	69
Additions from acquisition	17,825		—
Balance at end of period	$	17,894	$	69