MESA LABORATORIES INC /CO/ Goodwill & Intangibles Disclosure

Note 6. Goodwill and Intangible Assets, Net

 

Goodwill

 

Goodwill arises from the excess purchase price of acquired businesses over the fair value of acquired tangible and intangible assets, less assumed liabilities. Changes in the carrying amount of goodwill were as follows:

 

		Sterilization and Disinfection Control				Biopharmaceutical Development				Calibration Solutions				Clinical Genomics				Total
March 31, 2024		$	79,430			$	46,515			$	37,211			$	16,940			$	180,096
Effect of foreign currency translation			(22	)			1,696				2				(12	)			1,664
March 31, 2025		$	79,408			$	48,211			$	37,213			$	16,928			$	181,760
Effect of foreign currency translation			3,402				1,455				53				193				5,103
March 31, 2026		$	82,810			$	49,666			$	37,266			$	17,123			$	186,863

 

Finite-Lived Intangible Assets

 

Intangible assets other than goodwill consisted of the following:

 

		March 31, 2026												March 31, 2025
		Gross Carrying Amount				Accumulated Amortization				Net Carrying Amount				Gross Carrying Amount				Accumulated Amortization				Net Carrying Amount
Customer relationships		$	188,192			$	(124,981	)		$	63,211			$	190,069			$	(117,189	)		$	72,880
Other intangibles			60,308				(40,172	)			20,136				61,192				(37,197	)			23,995
Total finite-lived intangible assets		$	248,500			$	(165,153	)		$	83,347			$	251,261			$	(154,386	)		$	96,875

 

Amortization expense for intangible assets was as follows:

 

		Year Ended March 31,
		2026				2025				2024
Amortization in cost of revenues		$	2,803			$	2,641			$	6,052
Amortization in general and administrative			15,214				16,504				21,289
Total		$	18,017			$	19,145			$	27,341

 

The range of useful lives and weighted-average remaining useful lives of amortizable intangible assets as of March 31, 2026 were as follows: 

 

		Approx. Est. Useful		Weighted Avg.
		Life		Remaining Life
Description		(Years)		(Years)
Customer Relationships		5 - 12		6.6
Other Intangibles		7 - 12		5.0

 

Estimated future amortization expense for the fiscal years ending March 31 is presented below, based on foreign currency exchange rates in effect as of March 31, 2026:

 

Fiscal Year		Amortization Expense
2027		$	17,182
2028			16,553
2029			15,993
2030			11,316
2031			4,854

 

During fiscal year 2024, we recorded goodwill impairment losses totaling $156,892, consisting of $118,741 in our Clinical Genomics division and $38,151 in our Biopharmaceutical Development division. In addition, we recorded impairments of other intangible assets in our Clinical Genomics division totaling $117,641. These impairment losses were primarily driven by increases in the weighted average cost of capital, which reduced the estimated fair value of the related businesses, as well as downward revisions to expected future financial performance during fiscal year 2024.