Quarterly report pursuant to Section 13 or 15(d)

Goodwill and Intangible Assets

v3.23.2
Goodwill and Intangible Assets
9 Months Ended
Jun. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Disclosure [Text Block]

8. Goodwill and Intangible Assets

 

The Company accounts for goodwill at acquisition-date fair value and other intangible assets at acquisition-date fair value less accumulated amortization. See Note 1 for a summary of the Company’s policies relating to goodwill and intangible assets.

 

Intangible Assets

 

As of June 30, 2023, the Company’s intangible assets, net consists of the following, in thousands:

 

 

 

Weighted Average Amortization Period

 

Gross Carrying Amount

 

 

Accumulated Amortization

 

 

Net Carrying Amount

 

Noncompetition agreements

 

5.0 years

 

$

200

 

 

$

(20

)

 

$

180

 

Backlog

 

1.0 year

 

 

2,100

 

 

 

(1,050

)

 

 

1,050

 

Trade names

 

3.0-15.0 years

 

 

2,679

 

 

 

(585

)

 

 

2,094

 

Developed technology

 

5.0 years

 

 

6,700

 

 

 

(670

)

 

 

6,030

 

Customer relationships

 

6.0-10.0 years

 

 

4,409

 

 

 

(1,450

)

 

 

2,959

 

Total intangible assets

 

6.6 years

 

$

16,088

 

 

$

(3,775

)

 

$

12,313

 

 

As of September 30, 2022, the Company’s intangible assets, net consists of the following, in thousands:

 

 

 

Weighted Average Amortization Period

 

Gross Carrying Amount

 

 

Accumulated Amortization

 

 

Net Carrying Amount

 

Customer relationships

 

6.0-10.0 years

 

$

1,609

 

 

$

(1,280

)

 

$

329

 

Trade names

 

3.0-15.0 years

 

 

879

 

 

 

(450

)

 

 

429

 

Total intangible assets

 

9.8 years

 

$

2,488

 

 

$

(1,730

)

 

$

758

 

 

 

The estimated aggregate amortization expense for each of the five succeeding fiscal years as of June 30, 2023 is as follows, thousands:

 

Year ending September 30:

 

Amount

 

2023

 

$

1,010

 

2024

 

 

2,463

 

2025

 

 

1,937

 

2026

 

 

1,937

 

2027

 

 

1,937

 

Thereafter

 

 

3,029

 

Total

 

$

12,313

 

 

The aggregate amortization expense during the three months ended June 30, 2023 and 2022 were $1.0 million and less than $0.1 million, respectively. The aggregate amortization expense during the nine months ended June 30, 2023 and 2022 were $2.0 million and $0.1 million, respectively.

Goodwill

The Company evaluates goodwill at the reporting unit level, which, for the Company, is at the level of the reportable segments, semiconductor, material and substrate. The changes in carrying amount of goodwill allocated to each of the reporting units for the nine months ended June 30, 2023 is as follows, in thousands:

 

 

 

Semiconductor

 

 

Material and Substrate

 

 

Total Goodwill

 

Goodwill

 

$

5,905

 

 

$

5,263

 

 

$

11,168

 

Accumulated impairment losses

 

 

 

 

 

 

 

 

 

Balance at September 30, 2022

 

 

5,905

 

 

 

5,263

 

 

 

11,168

 

Goodwill acquired during 2023

 

 

 

 

 

17,854

 

 

 

17,854

 

Impairment of goodwill during 2023

 

 

 

 

 

 

 

 

 

Balance at June 30, 2023

 

$

5,905

 

 

$

23,117

 

 

$

29,022

 

Goodwill

 

$

5,905

 

 

$

23,117

 

 

$

29,022

 

Accumulated impairment losses

 

 

 

 

 

 

 

 

 

Balance at June 30, 2023

 

$

5,905

 

 

$

23,117

 

 

$

29,022