Note 6 - Intangible Assets

9 Months Ended

Jun. 28, 2025

Intangible Assets Disclosure [Text Block]

(6) Intangible Assets

The primary components of our intangible assets and the related accumulated amortization are as follows:

(In thousands)	Weighted- Average Useful Life (Years)		Gross		Accumulated Amortization			Net Book Value
As of June 28, 2025:
Customer relationships		18.7	$	21,455	$	(6,307	)	$	15,148
Developed technology and know-how		20.0		1,800		(975	)		825
Non-competition agreements		4.1		990		(218	)		772
Trade name		1.0		350		(241	)		109
Patents		7.0		200		(20	)		180
			$	24,795	$	(7,761	)	$	17,034

As of September 28, 2024:
Customer relationships		17.1	$	9,870	$	(5,427	)	$	4,443
Developed technology and know-how		20.0		1,800		(908	)		892
Non-competition agreements		5.0		60		(54	)		6
			$	11,730	$	(6,389	)	$	5,341

Amortization expense for intangibles was $480,000 and $188,000 for the three-month periods ended June 28, 2025, and June 29, 2024, respectively, and $1.4 million and $562,000 for the nine-month periods ended June 28, 2025, and June 29, 2024, respectively. Amortization expense for the next five years is $481,000 in 2025, $1.6 million in 2026, $1.3 million in 2027, $1.3 million in 2028, $1.1 million in 2029 and $11.2 million thereafter.

INSTEEL INDUSTRIES INC 10-Q