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Note 9 - Goodwill and Intangible Assets

3 Months Ended

Dec. 31, 2023

Goodwill and Intangible Assets Disclosure [Text Block]

9. GOODWILL AND INTANGIBLE ASSETS

Goodwill is attributable to the acquisitions of Genasys Spain, Zonehaven, Evertel, and the Amika Mobile asset purchase and is due to combining the integrated emergency critical communications, mass messaging solutions and software development capabilities with existing hardware products for enhanced offerings and the skill level of the acquired workforces. The Company periodically reviews goodwill for impairment in accordance with relevant accounting standards. As of December 31, 2023 and September 30, 2023, goodwill was $13,151 and $10,282 respectively. During the three months ended December 31, 2023, $2,772 was added to goodwill as a result of the Evertel acquisition. There were no additions or impairments to goodwill during the twelve months ended September 30, 2023.

The changes in the carrying amount of goodwill by segment for the three months ended December 31, 2023, were as follows:

	Hardware		Software		Total
Balance as of September 30, 2023	$	-	$	10,282	$	10,282
Acquisitions		-		2,772		2,772
Currency translation		-		97		97
Balance as of December 31, 2023	$	-	$	13,151	$	13,151

The changes in the carrying amount of intangible assets by segment for the three months ended December 31, 2023, were as follows:

	Hardware			Software			Total
Balance as of September 30, 2023	$	17		$	8,410		$	8,427
Acquisitions		-			2,550			2,550
Amortization		(1	)		(618	)		(619	)
Currency translation		-			8			8
Balance as of December 31, 2023	$	16		$	10,350		$	10,366

Intangible assets and goodwill related to Genasys Spain are translated from Euros to U.S. dollars at the balance sheet date. The net impact of foreign currency exchange differences arising during the period related to goodwill and intangible assets was an increase of $105.

The Company’s consolidated intangible assets consisted of the following:

	December 31,			September 30,
	2023			2023
Technology	$	14,246		$	11,930
Customer relationships		2,075			1,790
Trade name portfolio		614			605
Non-compete agreements		232			223
Patents		72			72
		17,239			14,620
Accumulated amortization		(6,873	)		(6,193	)
	$	10,366		$	8,427

As of December 31, 2023, future amortization expense is as follows:

Fiscal year ending September 30,
2024 (remaining nine months)		1,861
2025		2,358
2026		2,222
2027		2,048
2028		1,220
Thereafter		657
Total estimated amortization expense	$	10,366

Amortization expense was $619 and $532 for the three months ended December 31, 2023 and 2022, respectively.