Note 6 - Goodwill and Other Intangibles

3 Months Ended

Jun. 30, 2026

Notes to Financial Statements

Intangible Asset and Goodwill [Text Block]

6. Goodwill and Other Intangibles

Goodwill

The guidance under ASC 805-30, Business Combinations, provides for the recognition of goodwill on the acquisition date measured as the excess of the aggregate consideration transferred over the net of the acquisition date amounts of net assets acquired and liabilities assumed. The Company's goodwill balance relates to the Comtrafo Acquisition in fiscal 2025, the NWL acquisition in fiscal 2024, the Neeltran acquisition in fiscal 2021, the NEPSI acquisition in fiscal 2020, and Infinia Technology Corporation acquisition in fiscal 2017 and is reported in the Grid business segment.

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. Goodwill is not amortized but reviewed for impairment. Goodwill is reviewed annually on February 28 and whenever events or changes in circumstances indicate that the carrying value of the goodwill might not be recoverable. Changes in the Company’s goodwill are as follows (in thousands):

		*Goodwill*
March 31, 2025		$	48,164
Balance acquired – Comtrafo			122,620
Measurement period adjustment			2,674
FX impact			1,918
March 31, 2026		$	175,376
FX impact			1,302
June 30, 2026		$	176,678

The Company did not identify any triggers to assess impairment in the three months ended June 30, 2026 or 2025.

Other Intangibles

Intangible assets at June 30, 2026 and March 31, 2026 consisted of the following (in thousands):

		*June 30, 2026*												*March 31, 2026*
		*Gross Amount*				*Accumulated Amortization*				*Net Book Value*				*Gross Amount*				*Accumulated Amortization*				*Net Book Value*				*Estimated Useful Life*
Backlog			4,034				(2,542	)			1,493				4,008				(2,038	)			1,970				2
Trade name and trademarks			1,800				—				1,800				1,800				—				1,800				Indefinite
Customer relationships			19,003				(10,146	)			8,856				18,920				(9,795	)			9,125				5-10
Core technology and know-how			5,970				(5,439	)			531				5,970				(5,317	)			653				5-10
Intangible assets		$	30,807			$	(18,127	)		$	12,680			$	30,698			$	(17,150	)		$	13,548

The Company recorded intangible amortization expense related to customer relationship and core technology and know-how of $0.5 million and $0.3 million in the three months ended June 30, 2026 and 2025, respectively. The Company recorded intangible amortization expense related to backlog of $0.5 million, in the three months ended June 30, 2026 and did not record any intangible amortization expense related to backlog in the three months ended June 30, 2025.

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

Years ending March 31,		*Total*
2027 (remaining)			2,879
2028			3,472
2029			2,153
2030			1,219
2031			730
Thereafter			427
Total		$	10,880

The Company's intangible assets relate entirely to the Grid business segment operations in the United States and Brazil. The following table summarizes the Company’s intangibles by geography (in thousands):

		*June 30, 2026*				*March 31, 2026*
U.S.		$	4,264			$	4,567
Brazil			8,416				8,981
Total		$	12,680			$	13,548