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Goodwill and Intangible Assets | 12 Months Ended
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Mar. 31, 2012
Goodwill and Intangible Assets |
| 9. | Goodwill and Intangible Assets
Goodwill A reconciliation of the changes to the Company's carrying amount of goodwill for the years ended March 31, 2012 and 2011 was as follows:
Balance at March 31, 2010 |  | $ | 8,155 |
Goodwill impairment |  |  | (1,546 | )
Balance at March 31, 2011 |  | $ | 6,609 |
Goodwill impairment |  |  | (2,969 | )
Balance at March 31, 2012 |  | $ | 3,640 |
Fair value is defined under ASC 820, Fair Value Measurements and Disclosures as, “The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date”. The Company considered the income and market approaches to derive an opinion of value. Under the income approach, the Company utilized the discounted cash flow method, and under the market approach, consideration was given to the guideline public company method, the merger and acquisition method, and the market capitalization method. As a result of the assessment, the Company determined that its net book value exceeded the implied fair value; and recorded an impairment charge of $2,969 for the year ended March 31, 2012 and $1,546 for the year ended March 31, 2011 to write down goodwill. The impairment charge is included “Impairment of goodwill and intangible assets” within operating expenses in the statements of operations. Intangible Assets A reconciliation of the changes to the Company's carrying amount of intangible assets for the years ended March 31, 2012 and 2011 was as follows:
|  | Amortizable |  |  | Unamortizable |  |  | Total |
|  | Intangible Assets |  |  | Intangible Assets |  |  | Intangible Assets |
Balance at March 31, 2010 |  |  | 1,704 |  |  |  | 6,491 |  |  |  | 8,195 |
Amortization |  |  | (347 | ) |  |  | - |  |  |  | (347 | )
Impairment of intangibles |  |  | (464 | ) |  |  | (4,018 | ) |  |  | (4,482 | )
Balance at March 31, 2011 |  |  | 893 |  |  |  | 2,473 |  |  |  | 3,366 |
Amortization |  |  | (230 | ) |  |  | - |  |  |  | (230 | )
Impairment of intangibles |  |  | - |  |  |  | (2,319 | ) |  |  | (2,319 | )
Balance at March 31, 2012 |  | $ | 663 |  |  | $ | 154 |  |  | $ | 817 |
The Company performed its annual review of the fair value of intangible assets in the fourth quarter of fiscal 2012. The Company considered the income and market approaches to derive an opinion of value. As a result of the assessment, the Company determined that its net book value exceeded the implied fair value; and recorded an impairment charge of $2,319 for the year ended March 31, 2012 and $4,018 for the year ended March 31, 2011 to write down intangible assets. The impairment charge is included “Impairment of goodwill and intangible assets” within operating expenses in the statements of operations. The components of intangible assets as at March 31, 2011 and 2012 were as follows:
|  | As of March 31, 2012 |
|  |  |  |  | Accumulated |  |  |  |
|  | Cost |  |  | Amortization |  |  | Net |
Software |  | $ | 1,611 |  |  | $ | (948 | ) |  | $ | 663 |
Trade name / Trademark |  |  | 154 |  |  |  | - |  |  | $ | 154 |
Customer list |  |  | 1,220 |  |  |  | (1,220 | ) |  | $ | (0 | )
License agreements |  |  | 443 |  |  |  | (443 | ) |  | $ | (0 | )
|  | $ | 3,428 |  |  | $ | (2,611 | ) |  | $ | 817 |
|  | As of March 31, 2011 |
|  |  |  |  | Accumulated |  |  |  |
|  | Cost |  |  | Amortization |  |  | Net |
Software |  | $ | 1,611 |  |  | $ | (718 | ) |  | $ | 893 |
Trade name / Trademark |  |  | 2,473 |  |  |  | - |  |  | $ | 2,473 |
Customer list |  |  | 1,220 |  |  |  | (1,220 | ) |  | $ | (0 | )
License agreements |  |  | 443 |  |  |  | (443 | ) |  | $ | (0 | )
|  | $ | 5,747 |  |  | $ | (2,381 | ) |  | $ | 3,366 |
The Company has included amortization of acquired intangible assets directly attributable to revenue-generating activities in cost of revenues. The Company has included amortization of acquired intangible assets not directly attributable to revenue-generating activities in operating expenses. During the years ended March 31, 2012 and 2011, the Company recorded amortization expense for continuing operations in the amount of $230 and $295, respectively, in cost of revenues; and amortization expense in the amount of $0 and $54 respectively, in operating expenses. During the years ended March 31, 2012 and 2011 the Company recorded amortization expense for discontinued operations in the amount of $0 and $26, respectively, in cost of revenues; and amortization expense in the amount of $0 and $40, respectively, in operating expenses. Based on the amortizable intangible assets as of March 31, 2012, we estimate amortization expense for the next five years to be as follows:
|  |  | Amortization |
Year Ending March 31, |  |  | Expense |
|  |  | (in thousands) |
| 2013 |  |  | $ | 232 |
| 2014 |  |  |  | 232 |
| 2015 |  |  |  | 199 |
|  |  |  | $ | 663 |
Below is a summary impairment of Goodwill and Intangible assets:
|  | Intangible Assets |  |  | Goodwill |
Balance as of March 31, 2010 |  | $ | 9,676 |  |  | $ | 53,066 |
Impairment |  |  | 4,482 |  |  |  | 1,546 |
Balance as of March 31, 2011 |  | $ | 14,158 |  |  | $ | 54,612 |
Impairment |  |  | 2,319 |  |  |  | 2,969 |
Balance as of March 31, 2012 |  | $ | 16,477 |  |  | $ | 57,581 |

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- 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. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6905597&loc=d3e13816-109267 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6905858&loc=d3e16265-109275 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 142 -Paragraph 42, 43, 44, 45, 46, 47 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6905858&loc=d3e16373-109275 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6905858&loc=d3e16323-109275 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6905597&loc=d3e13854-109267 + Details
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