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Note 2 - Supplemental Balance Sheet Information

6 Months Ended

Jun. 30, 2022

Supplemental Balance Sheet Disclosures [Text Block]

Note 2 – Supplemental Balance Sheet Information

Receivables

Contract and other receivables consisted of the following (in ‘000’s):

	June 30, 2022 (unaudited)			December 31, 2021
Contract and other receivables	$	1,623		$	1,853
Allowance for doubtful accounts		(7	)		(7	)
Contracts and other receivables, net	$	1,616		$	1,846

Inventories

We state inventories at the lower of cost or net realizable value, using the first-in-first-out-method (in ‘000’s) as follows:

	June 30, 2022 (unaudited)			December 31, 2021
Raw materials	$	189		$	150
Reseller inventories		47			701
Reserve		(5	)		(4	)
Inventories, net	$	231		$	847

Goodwill and Intangible Assets, Net

Goodwill and intangible assets, net consisted of the following (in ‘000’s):

	June 30, 2022 (unaudited)					December 31, 2021
	Gross					Gross
	Carrying		Accumulated			Carrying		Accumulated
	Amount		Amortization			Amount		Amortization
Intangible assets not subject to amortization:
Goodwill	$	780		-		$	780		-
Intangible assets subject to amortization:
Customer relationships	$	906	$	(825	)	$	906	$	(780	)
Acquired software	$	234	$	(234	)	$	234	$	(234	)

Goodwill attributable to reporting units (in ‘000’s):

	June 30, 2022 (unaudited)		December 31, 2021
Facilities unit	$	643	$	643
Systems Integration unit		137		137
Total	$	780	$	780

At June 30, 2022 and December 31, 2021, both the facilities unit and the systems integration unit had negative carrying amounts on our records.

We recognized amortization expense related to intangibles of approximately $23,000 for each of the three-month periods ended June 30, 2022 and 2021, respectively. We recognized amortization expense related to intangibles of approximately $45,000 for each of the six-month periods ended June 30, 2022 and 2021, respectively.

We have elected to use December 31 as our annual date to test goodwill and intangibles for impairment. As circumstances change that could affect the recoverability of the carrying amount of the assets during an interim period, we will evaluate goodwill and other long-lived intangible assets for impairment. We performed a quantitative analysis of our goodwill and intangibles at December 31, 2021 as part of our annual testing for impairment and concluded that there was no impairment. We considered relevant matters, including macroeconomic conditions and the effects of COVID-19 on our operations, and there was no identified material triggering events or circumstances that occurred during the three or six-month periods ended June 30, 2022 or 2021 that indicated the carrying value of our goodwill and other long-lived intangible assets was impaired.

Property and Equipment

Property and equipment consisted of the following (in ’000’s):

	Estimated Useful Lives (years)			June 30, 2022 (unaudited)			December 31, 2021
Trade equipment		5		$	255		$	144
Leasehold improvements	2	-	5		725			725
Furniture and fixtures		7			16			16
Computer equipment and software		3			2,146			2,135
					3,142			3,020
Less accumulated depreciation					(2,873	)		(2,739	)
Property and equipment, net				$	269		$	281

Depreciation of property and equipment and amortization of leasehold improvements and software totaled $70,000 and $136,000 for the three-month periods ended June 30, 2022 and 2021, respectively. Depreciation of property and equipment and amortization of leasehold improvements and software totaled $180,000 and $273,000 for the six-month periods ended June 30, 2022 and 2021, respectively.

Accounts Payable and Accrued Expenses

Accounts payable and accrued expenses consisted of the following (in ’000’s):

	June 30, 2022 (unaudited)		December 31, 2021
Accounts payable	$	4,290	$	5,472
Legal Settlement		-		500
Accrued expenses		1,171		703
Compensation, benefits & related taxes		250		270
Other accrued expenses		39		71
Total accounts payable and accrued expenses	$	5,750	$	7,016