Note 6 - Goodwill and Other Intangibles

9 Months Ended

Dec. 31, 2022

Notes to Financial Statements

Goodwill and Intangible Assets Disclosure [Text Block]

6. Goodwill and Other Intangibles

Goodwill

Goodwill represents the difference between the purchase price and the fair value of the identifiable tangible and intangible net assets when accounted for using the purchase method of accounting. The Company's goodwill balance relates to the Neeltran Acquisition in fiscal 2021, the NEPSI Acquisition in fiscal 2020, and the acquisition of Infinia Technology Corporation in fiscal 2017 and is reported in the Grid business segment. Goodwill is not amortized but reviewed for impairment. Goodwill is reviewed annually and whenever events or changes in circumstances indicate that the carrying value of the goodwill might not be recoverable.

The following table provides a roll forward of the changes in the Company's Grid business segment goodwill balance:

	Goodwill
March 31, 2021	$	34,634
Neeltran Acquisition		8,837
March 31, 2022	$	43,471
Less impairment loss		-
December 31, 2022	$	43,471

The Company did not identify any triggering events in the three and nine months ended  December 31, 2022 that would require interim impairment testing of goodwill.

Other Intangibles

Intangible assets at  December 31, 2022 and  March 31, 2022 consisted of the following (in thousands):

	December 31, 2022							March 31, 2022
	Gross Amount		Accumulated Amortization			Net Book Value		Gross Amount		Accumulated Amortization			Net Book Value		Estimated Useful Life
Licenses	$	3,610	$	(3,610	)		—	$	3,610	$	(3,610	)		—		7
Backlog	$	681	$	(675	)	$	6	$	681	$	(631	)	$	50		2
Trade name and trademarks		1,800		—			1,800		1,800		—			1,800		Indefinite
Customer relationships		9,600		(4,413	)		5,187		9,600		(2,723	)		6,877		7
Core technology and know-how		5,970		(3,748	)		2,222		5,970		(3,386	)		2,584		5-10
Intangible assets	$	21,661	$	(12,446	)	$	9,215	$	21,661	$	(10,350	)	$	11,311

The Company recorded intangible amortization expense related to customer relationship and core technology and know-how of $0.7 million and $2.1 million, in the three and nine months ended  December 31, 2022, respectively, and $0.6 million and $1.8 million in the three and nine months ended December 31, 2021, respectively. Additionally, the Company recorded intangible amortization related to backlog that is reported in cost of revenues of less than $0.1 million in each of the three and nine months ended  December 31, 2022. The Company recorded intangible amortization related to backlog that is reported in cost of revenues of $0.1 million in each of the three and nine months ended December 31, 2021, respectively.

Expected future amortization expense related to intangible assets is as follows (in thousands):

Years ended March 31,	Total
2023		688
2024		2,158
2025		1,648
2026		1,221
2027		1,085
Thereafter		615
Total	$	7,415

The Company's intangible assets relate entirely to the Grid business segment operations in the United States.