Goodwill and Intangible Assets

12 Months Ended

Mar. 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

4. Goodwill and Intangible Assets

Goodwill

The following is a summary of goodwill activity:

Balance at April 1, 2015	$	2,168,833
Decrease from disposal of ACC assets		(461,500)
Impairment loss in AKM		(83,943)
Other		(907)
Balance at March 31, 2016		1,622,483

Balance at March 31, 2017		1,622,483

Intangible Assets, Net

Intangible assets, net consisted of the following:

	Weighted		Gross						Gross				Net
	Average		March 31,				Impairment/		March 31,		Accumulated		March 31,
	Life (Yrs)		2016		Additions		Disposal		2017		Amortization		2017
Indefinite Lived Assets:
Medicare License			$	704,000	$	-	$	-	$	704,000	$	-	$	704,000
Amortized intangible assets:
Acquired Technology		5		1,312,500		-		-		1,312,500		(262,500)		1,050,000
Non-compete		4		117,000		-		(22,328)		94,672		(94,672)		-
Network relationships		5		220,000		-		-		220,000		(117,331)		102,669
Trade name		5		191,000		-		(45,983)		145,017		(97,417)		47,600
			$	2,544,500	$	-	$	(68,311)	$	2,476,189	$	(571,920)	$	1,904,269

	Weighted		Gross						Gross				Net
	Average		March 31,				Impairment/		March 31,		Accumulated		March 31,
	Life (Yrs)		2015		Additions		Disposal		2016		Amortization		2016
Indefinite Lived Assets:
Medicare License			$	704,000	$	-	$	-	$	704,000	$	-	$	704,000
Amortized intangible assets:
Acquired Technology		5		-		1,312,500		-		1,312,500		-		1,312,500
Exclusivity		4		40,000		-		(40,000)		-		-		-
Non-compete		4		185,400		-		(68,400)		117,000		(58,738)		58,262
Payor relationships		5		107,000		-		(107,000)		-		-		-
Network relationships		5		220,000		-		-		220,000		(73,333)		146,667
Trade name		5		257,000		-		(66,000)		191,000		(59,217)		131,783
			$	1,513,400	$	1,312,500	$	(281,400)	$	2,544,500	$	(191,288)	$	2,353,212

The acquired technology of $1,312,500 was placed into service in April 2016 and the related amortization has been included in the table above from that date.

Included in depreciation and amortization on the consolidated statements of operations is amortization expense of $380,632 and $185,776 for the years ended March 31, 2017 and 2016, respectively.

During the year ended March 31, 2017, the Company recorded an impairment charge on intangible assets of $68,311 in general and administrative expenses as the carrying amount was determined not to be recoverable.

On March 1, 2016, the Company sold substantially all the assets of ACC to an unrelated third party. In connection with the sale, the Company received cash of $10,000 and issued a note receivable in the amount of $51,000, of which $5,000 was repaid prior to year-end. The Company recognized a loss on disposal of $476,745 related to this transaction, which included the write-off of the remaining goodwill and intangible assets of ACC in the amount of $461,500 and $27,427, respectively. In addition, management determined that the remaining goodwill and intangible assets of AKM in the amount of $83,943 and $123,342, respectively, was not recoverable. Accordingly, the Company recorded an impairment charge in the aggregate amount of $207,285 in general and administrative expenses for the year ended March 31, 2016.

Future amortization expense is estimated to be approximately as follows for each for the five years ending March 31 thereafter:

2018	$	327,000
2019		327,000
2020		284,000
2021		262,269

	$	1,200,269

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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