Annual report pursuant to Section 13 and 15(d)

Intangible Assets and Goodwill

v2.4.0.8
Intangible Assets and Goodwill
12 Months Ended
Dec. 31, 2013
Intangible Assets and Goodwill

NOTE 4 — INTANGIBLE ASSETS AND GOODWILL

The Company conducted its annual two-step impairment test of intangible assets and goodwill as of June 30, 2013 and determined that there was no impairment. The Company also tests its intangible assets and goodwill between the annual impairment test if events occur or circumstances change that would more likely than not reduce the fair value of the Company or its assets below their carrying amounts. No events have occurred that triggered further impairment testing of the Company’s intangible assets and goodwill during the years ended December 31, 2013 and 2012.

Amortization expense for the years ended December 31, 2013, 2012, and 2011, totaled $117,000, $136,000, and $130,000, respectively. Estimated intangible asset amortization expense, based on existing intangible assets, for the years ending December 31, 2014, 2015, and 2016, is $69,000, $62,000, and $52,000, respectively.

The following table presents the details of the Company’s intangible assets, related accumulated amortization and goodwill (in thousands):

 

 

As of December 31, 2013

 

 

As of December 31, 2012

 

 

Gross

 

 

Accumulated
Amortization

 

 

Impairment

 

 

Net

 

 

Gross

 

 

Accumulated
Amortization

 

 

Impairment

 

 

Net

 

Patents (4-10 years)

$

1,914

 

 

$

(1,895

)

 

$

 

 

$

19

 

 

$

1,914

 

 

$

(1,833

)

 

$

 

 

$

81

 

Trademarks (6 years)

 

69

 

 

 

(69

)

 

 

 

 

 

 

 

 

69

 

 

 

(69

)

 

 

 

 

 

 

Other (4 to 6 years)

 

817

 

 

 

(653

)

 

 

 

 

 

164

 

 

 

817

 

 

 

(598

)

 

 

 

 

 

219

 

Total

$

2,800

 

 

$

(2,617

)

 

$

 

 

$

183

 

 

$

2,800

 

 

$

(2,500

)

 

$

 

 

$

300

 

Goodwill (Indefinite life)

$

2,926

 

 

 

 

 

 

 

 

 

 

$

2,926

 

 

$

2,926

 

 

 

 

 

 

 

 

 

 

$

2,926

 

In December 2012, the Company capitalized approximately $224,000 related to intangible assets acquired from its former distributor in India. These assets primarily include a non-compete agreement and customer and luminary lists. Of the total capitalized balance, $200,000 was a noncash investment whereby the Company reduced the accounts receivable from its former distributor in exchange for these assets. The Company is amortizing these assets on a straight-line basis over the expected useful life of four years and has recognized amortization expense of approximately $55,000 and $5,000 related to these intangible assets during the years ended December 31, 2013 and 2012, respectively.