Quarterly report [Sections 13 or 15(d)]

Acquisition

v3.25.4
Acquisition
 9 Months Ended
Dec. 31, 2025
Business Combination [Abstract]  
Acquisition

NOTE 2 – ACQUISITION:

On October 20, 2025, the Company completed its acquisition of Xdot Bearing Technologies ("Xdot"), a specialized consulting, design, and engineering firm focused on foil bearing technology. Xdot will be integrated into the Barber-Nichols ("BN") business. The purchase price of this transaction was $900, subject to certain potential adjustments including a customary working capital adjustment, and was funded with cash on hand. The purchase agreement included two potential cash contingent earn-outs to be paid on the first and second anniversary of the transaction dependent upon the achievement of certain qualitative milestones totaling $600. As of December 31, 2025, a $514 contingent earn-out liability was recorded. The Company preliminarily recorded goodwill in the amount of $661, as well as an intangible asset for technology and technical know-how in the amount of $650, which will be amortized over 10 years and is deductible for tax purposes. The sales and results of Xdot were immaterial to fiscal 2026. Acquisition related costs were $539 and $643 for the three and nine months ended December 31, 2025 in connection with the Company's acquisitions.

See Note 16 "Subsequent Events" for additional information regarding the Company's acquisition activity.