Goodwill and Intangible Assets

3 Months Ended

Apr. 03, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND INTANGIBLE ASSETS

Goodwill

On October 4, 2021, we entered into a Securities Purchase Agreement to acquire all of the issued and outstanding membership interests of Blue Raven Solar Holdings LLC (“Blue Raven”), and 35% of the issued and outstanding membership interests in Albatross Software LLC, an affiliate of Blue Raven. Goodwill presented on our condensed consolidated financial statements represents Goodwill resulting from the acquisition of Blue Raven.

Other Intangible Assets

The following table represents our other intangible assets with finite useful lives:


(In thousands)	Gross Carrying Amount		Accumulated Amortization		Net Book Value
As of April 3, 2022:
Developed technology	$	3,700	$	(617)	$	3,083
Brand	15,800		(1,975)		13,825
Non-compete agreements	3,400		(566)		2,834
Software development costs1	5,100		(66)		5,034
Total	$	28,000	$	(3,224)	$	24,776

As of January 2, 2022:
Developed technology	$	3,700	$	(308)	$	3,392
Brand	15,800		(988)		14,812
Non-compete agreements	3,400		(283)		3,117
Software development costs1	3,579		(21)		3,558
Total	$	26,479	$	(1,600)	$	24,879

1 Includes our external-use software development costs which are being capitalized in accordance with ASC 985-20, Software to be Sold or Leased Externally. Refer to Note 1. Organization and Summary of Significant Accounting Policies for details.

Aggregate amortization expense for intangible assets was $1.6 million and zero for the three months ended April 3, 2022 and April 4, 2021, respectively. No impairment loss was recorded for intangible assets for the three months ended April 3, 2022 and April 4, 2021.

As of April 3, 2022, the estimated future amortization expense related to intangible assets with finite useful lives for each of the next four fiscal years was as follows, through the end of the useful life of all intangible assets:


	Expected Amortization Expense
Fiscal Year	(In thousands)
2022 (remaining 9 months)	$	7,192
2023	8,776
2024	5,846
2025	2,962
Total	$	24,776