Note 5 - Intangible Assets

12 Months Ended

Dec. 31, 2017

Goodwill and Intangible Assets Disclosure [Text Block]

Intangible Assets

In accordance with the Accounting Standards Codification (ASC), an impairment test of indefinitely lived intangible assets is performed at least annually or more frequently if changes in circumstances or the occurrence of events indicate potential impairment. Events or changes in circumstances that could trigger an impairment review include significant nonperformance relative to the expected historical or projected future operating results, significant changes in the manner of the use of the acquired assets or the strategy for the overall business or significant negative industry or economic trends.

All of the Company

’s intangible assets were recorded in connection with its

July 1, 2011

acquisition of CTI. The intangible assets were evaluated on the premise of highest and best use to a market participant, primarily utilizing the income approach valuation methodology. The useful life of the CTI trade name was determined to be indefinite primarily due to its history and reputation in the marketplace, the Company’s expectation that the CTI trade name will continue to be used throughout the life of CTI, and the conclusion that there are currently

other factors identified that would limit its useful life. The useful life of the CTI customer relationships was determined to be

fifteen

years, based primarily on the consistent and predictable revenue source associated with the existing CTI customer base, the present value of which extends through the

fifteen

year amortization period. The Company will continue to evaluate the useful life assigned to our amortizable customer relationships in future periods.

During

201

and

2016,

a step

zero

test was performed for the indefinitely lived intangible assets and

indication of impairment was present.

Intangible assets, net, consisted of the following as of

December 31,

201

and

2016:

	As of December 31, 201 7
(in thousands )	Gross Carrying Amoun t		Accumulated Amortizatio n			Impairment s		Intangible Assets, Ne t

Customer relationships - subject to amortizatio n	$	13,332	$	(5,777	)	$	-	$	7,555
Trade name - not subject to amortizatio n		15,425		-			-		15,425
	$	28,757	$	(5,777	)	$	-	$	22,980

	As of December 31, 201 6
(in thousands )	Gross Carrying Amoun t		Accumulated Amortizatio n			Impairment s		Intangible Assets, Ne t

Customer relationships - subject to amortizatio n	$	13,332	$	(4,888	)	$	-	$	8,444
Trade name - not subject to amortizatio n		15,425		-			-		15,425
	$	28,757	$	(4,888	)	$	-	$	23,869

The Company estimates that amortization expense for its intangible assets subject to amortization will be $

0.9

million per year in each of the next

five

years.

- 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 + Details