Annual report pursuant to Section 13 and 15(d)

Acquisition (Tables)

v3.22.1
Acquisition (Tables)
12 Months Ended
Mar. 31, 2022
Business Combinations [Abstract]  
Schedule of impact of the adjustments on individual line items in the Consolidated Balance Sheet The following table presents the impact of the final adjustments on individual line items in the Company's Consolidated Balance Sheet at March 31, 2022:

 

 

 

 

Before Adjustment of Final Allocation of Purchase Price

 

 

 

 

 

After Adjustment of Final Allocation of Purchase Price

 

 

 

June 1,

 

 

 

 

 

March 31,

 

 

 

2021

 

 

Adjustments

 

 

2022

 

Assets acquired:

 

 

 

 

 

 

 

 

 

  Cash and cash equivalents

 

$

1,587

 

 

$

(719

)

 

$

868

 

  Trade accounts receivable, net of
     allowances

 

 

8,154

 

 

 

(80

)

 

 

8,074

 

  Unbilled revenue

 

 

7,068

 

 

 

 

 

 

7,068

 

  Inventories

 

 

3,669

 

 

 

(120

)

 

 

3,549

 

  Prepaid expenses and other current
     assets

 

 

409

 

 

 

67

 

 

 

476

 

  Property, plant & equipment, net

 

 

8,037

 

 

 

 

 

 

8,037

 

  Operating lease asset

 

 

9,026

 

 

 

 

 

 

9,026

 

  Goodwill

 

 

22,923

 

 

 

600

 

 

 

23,523

 

  Customer relationships

 

 

11,800

 

 

 

 

 

 

11,800

 

  Technology and technical know-
     how

 

 

10,100

 

 

 

 

 

 

10,100

 

  Other intangibles, net

 

 

11,200

 

 

 

(600

)

 

 

10,600

 

Total assets acquired

 

 

93,973

 

 

 

(852

)

 

 

93,121

 

Liabilities assumed:

 

 

 

 

 

 

 

 

 

  Accounts payable

 

 

2,736

 

 

 

(894

)

 

 

1,842

 

  Accrued compensation

 

 

1,341

 

 

 

 

 

 

1,341

 

  Accrued expenses and other
     current liabilities

 

 

665

 

 

 

42

 

 

 

707

 

  Customer deposits

 

 

6,048

 

 

 

 

 

 

6,048

 

  Operating lease liabilities

 

 

9,066

 

 

 

 

 

 

9,066

 

  Other long-term liabilities

 

 

2,103

 

 

 

 

 

 

2,103

 

Total liabilities assumed

 

 

21,959

 

 

 

(852

)

 

 

21,107

 

Purchase price

 

$

72,014

 

 

$

 

 

$

72,014

 

Schedule of Purchase Price Allocated to Intangible Assets

The purchase price was allocated to specific intangible assets as follows:

 

 

 

Fair Value Assigned

 

 

Weighted Average Amortization Period

At December 31, 2021

 

 

 

 

 

Intangibles subject to amortization:

 

 

 

 

 

Customer relationships

 

$

11,800

 

 

20 years

Technology and technical know-how

 

 

10,100

 

 

20 years

Backlog

 

 

3,900

 

 

4 years

 

 

$

25,800

 

 

 

Intangibles not subject to amortization:

 

 

 

 

 

Tradename

 

 

6,700

 

 

Indefinite

 

 

$

6,700

 

 

 

Schedule of Estimated Annual Amortization Expense

Technology and technical know-how and customer relationships are amortized in Selling, general and administrative expense on a straight line basis over their estimated useful lives. Backlog is amortized in Cost of products sold over the projected conversion period based on management estimates at time of purchase. Intangible amortization was $2,522 for fiscal 2022. The estimated annual amortization expense is as follows:

 

 

 

Annual Amortization

 

2023

 

$

2,476

 

2024

 

 

1,782

 

2025

 

 

1,318

 

2026

 

 

1,095

 

2027

 

 

1,095

 

2028 and thereafter

 

 

15,511

 

Total intangible amortization

 

$

23,277

 

Schedule of Unaudited Pro Forma Information

The Consolidated Statement of Operations for fiscal 2022 includes net sales of BN of $47,865. The following unaudited pro forma information presents the consolidated results of operations of the Company as if the BN acquisition had occurred at the beginning of each of the fiscal periods presented:

 

 

 

For the Year Ended

 

 

 

 

March 31,

 

 

 

 

2022

 

 

2021

 

 

Net sales

 

$

134,627

 

 

$

155,409

 

 

Net (loss) income

 

 

(7,196

)

 

 

5,067

 

 

(Loss) earnings per share

 

 

 

 

 

 

 

     Basic

 

$

(0.68

)

 

$

0.48

 

 

     Diluted

 

$

(0.68

)

 

$

0.48