XML 49 R11.htm IDEA: XBRL DOCUMENT v2.4.0.6
NOTE 5 - INTANGIBLE ASSETS
 12 Months Ended
Dec. 31, 2011
Goodwill and Intangible Assets Disclosure [Text Block]
NOTE 5 - INTANGIBLE ASSETS

Asure accounted for its historical acquisitions in accordance with ASC 805, Business Combinations.  The Company recorded the amount exceeding the fair value of net assets acquired at the date of acquisition as goodwill. The Company recorded intangible assets apart from goodwill if the assets had contractual or other legal rights or if the assets could be separated and sold, transferred, licensed, rented or exchanged.  Asure’s goodwill relates to the current year acquisitions of ADI Time and Legiant.Asure’s intangible assets relate to ADI Time, Legiant and its acquisition of iSarla Inc. and the iEmployee operations.  

 In accordance with ASC 350, Intangibles-Goodwill and Other, Asure reviews and evaluates its long-lived assets, including intangible assets with finite lives, for impairment whenever events or changes in circumstances indicate that their net book value may not be recoverable.  Based on Asure’s impairment test, no impairment was identified for the Company’s intangible assets for the years ended December 31, 2011 and 2010. 

On May 3, 2010, the Company and Ceridian Corporation (“Ceridian”), a reseller of the Company’s iEmployee products, entered into an agreement by which joint customers of the Company and Ceridian were given until July 31, 2010 to choose either to (i) contract directly with the Company to continue using our goods and services, or (ii) continue using Ceridian’s offerings that may not include the Company’s products and services.  Depending on the number of customers that contracted with Asure and the related pricing, the cash flows associated with the Ceridian customers may vary from historical levels.  Thus the Company tested the Customer Relationships intangible asset for impairment in accordance with ASC 350.  The Company compared the asset’s carrying amount against the estimated undiscounted cash flows to be generated from the customers that contracted with Asure over the estimated useful life of the intangible asset.  The undiscounted cash flows from the intangible asset exceeded the carrying value of the intangible asset and thus no impairment was required.

As of December 31, 2011 and 2010, the gross carrying amount and accumulated amortization of the Company’s intangible assets are are as follows:

         
December 31, 2011
 
Intangible Asset
 
Amortization
Period (in Years)
   
Gross
   
Accumulated
Amortization
   
Net
 
                         
Developed Technology
   
5
   
$
1,586
   
$
(794
)
 
$
792
 
Customer Relationships
   
8
     
6,767
     
(2,175
)
   
4,592
 
Reseller Relationship
    7      
853
     
(30
)
   
823
 
Trade Names
   
5
     
325
     
(253
)
   
72
 
Covenant not-to-compete
   
4
     
182
     
(154
)
   
28
 
           
$
9,713
   
$
(3,406
)
 
$
6,307
 

         
December 31, 2010
 
Intangible Asset
 
Amortization
Period (in Years)
   
Gross
   
Accumulated
Amortization
   
Net
 
                         
Developed Technology
   
5
   
$
915
   
$
(592
)
 
$
323
 
Customer Relationships
   
8
     
4,015
     
(1,624
)
   
2,391
 
Trade Names
   
5
     
288
     
(187
)
   
101
 
Covenant not-to-compete
   
4
     
150
     
(121
)
   
29
 
           
$
5,368
   
$
(2,524
)
 
$
2,844
 

 Amortization expense is recorded using the straight-line method over the estimated economic useful lives of the intangible assets, as noted above.  Amortization expenses were $680 and $598 for the  years ended December 31, 2011 and 2010 respectively, included in Operating Expenses. Amortization expenses recorded in Cost of Goods Sold were $202 and $183 for the years ended December 31, 2011 and 2010, respectively.  $19 of the $202 for the year ended December 31, 2011 relates to the acquisitions in the fourth quarter.  The following table summarizes the estimated amortization expense relating to the Company’s intangible assets for the next five fiscal years as of December 31, 2011: