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Note 3 - Impairment Loss on Goodwill
9 Months Ended
Dec. 31, 2017
Notes to Financial Statements  
Goodwill and Intangible Assets Disclosure [Text Block]
Note
3
– Impairment Loss on Goodwill
 
During the
nine
months ended
December 31, 2017,
revenues in our Cold Chain Packaging reporting segment decreased significantly as compared to the same period in the prior year primarily due to a significant decrease in revenues from our largest customer and the loss of the business of
one
of our larger customers. During the
three
months ended
December 31, 2017
we completed a detailed review of the cold chain packaging business and concluded that long and difficult sales-cycles associated with this product set, when coupled with higher than previously contemplated costs for operating and expanding the necessary infrastructure to support revenues growth have resulted in a forecast of lower than expected revenues, gross margin percentages and overall profitability as compared to our original model for this business. Based on these facts, we concluded that we had a triggering event requiring assessment of impairment for certain of our long-lived assets associated with the Cold Chain Packaging reporting segment. As a result, we reviewed the long-lived assets associated with this reporting segment and recorded a
$13,819,000
impairment charge related to goodwill, which is included in impairment loss on goodwill on the accompanying condensed consolidated statements of operations for the
three
and
nine
months ended
December 31, 2017.
The impairment loss was measured using a market approach utilizing an EBITA multiple model. The remaining goodwill and intangible assets associated with this segment are
$1,434,000
and
$4,340,000,
respectively as of
December 31, 2017.