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NOTE 5 - GOODWILL AND OTHER INTANGIBLE ASSETS | 9 Months Ended
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Sep. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Intangible Assets Disclosure [Text Block] | NOTE 5 – GOODWILL AND OTHER INTANGIBLE ASSETS We accounted for our historical acquisitions in accordance with ASC 805, Business Combinations. We recorded the amount exceeding the fair value of net assets acquired at the date of acquisition as goodwill. We 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. Our goodwill relates to acquisitions from 2011 through 2018. In accordance with ASC 350, Intangibles-Goodwill and Other, we review and evaluate our long-lived assets, including intangible assets with finite lives, for impairment whenever events or changes in circumstances indicate that we may not recover their net book value. We test goodwill for impairment on an annual basis in the fourth fiscal quarter of each year, and between annual tests, if indicators of potential impairment exist, using a fair-value-based approach. There has been no impairment of goodwill for the periods presented. We amortize intangible assets not considered to have an indefinite useful life using the straight-line method over their estimated period of benefit, which generally ranges from one to nine years. Each reporting period, we evaluate the estimated remaining useful life of intangible assets and assess whether events or changes in circumstances warrant a revision to the remaining period of amortization or indicate that impairment exists. We have not identified any impairments of finite-lived intangible assets during any of the periods presented. The following table summarizes the changes in our goodwill:
Balance at December 31, 2017 |  | $ | 77,348 |
Goodwill recognized upon acquisitions |  |  | 31,632 |
Adjustments to Goodwill associated with acquisitions |  |  | (1,490 | )
Foreign exchange adjustment to goodwill |  |  | 67 |
Balance at September 30, 2018 |  | $ | 107,557 |
The gross carrying amount and accumulated amortization of our intangible assets as of September 30, 2018 and December 31, 2017 are as follows:
|  |  |  |  |  | September 30, 2018 |
Intangible Assets |  | Weighted Average Amortization Period (in Years) |  |  | Gross |  |  | Accumulated Amortization |  |  | Net |
Developed Technology |  |  | 6.0 |  |  | $ | 14,849 |  |  | $ | (6,513 | ) |  | $ | 8,336 |
Customer Relationships |  |  | 7.4 |  |  |  | 81,030 |  |  |  | (18,252 | ) |  |  | 62,778 |
Reseller Relationships |  |  | 7.0 |  |  |  | 853 |  |  |  | (853 | ) |  |  | - |
Trade Names |  |  | 9.9 |  |  |  | 5,199 |  |  |  | (1,142 | ) |  |  | 4,057 |
Noncompete |  |  | 5.1 |  |  |  | 1,022 |  |  |  | (370 | ) |  |  | 652 |
|  |  | 7.3 |  |  | $ | 102,953 |  |  | $ | (27,130 | ) |  | $ | 75,823 |
|  |  |  |  |  | December 31, 2017 |
Intangible Assets |  | Weighted Average Amortization Period (in Years) |  |  | Gross |  |  | Accumulated Amortization |  |  | Net |
Developed Technology |  |  | 6.7 |  |  | $ | 11,925 |  |  | $ | (5,010 | ) |  | $ | 6,915 |
Customer Relationships |  |  | 9.5 |  |  |  | 37,096 |  |  |  | (13,142 | ) |  |  | 23,954 |
Reseller Relationships |  |  | 7.0 |  |  |  | 853 |  |  |  | (761 | ) |  |  | 92 |
Trade Names |  |  | 10.4 |  |  |  | 2,915 |  |  |  | (884 | ) |  |  | 2,031 |
Noncompete Agreements |  |  | 6.1 |  |  |  | 692 |  |  |  | (130 | ) |  |  | 562 |
|  |  | 8.8 |  |  | $ | 53,481 |  |  | $ | (19,927 | ) |  | $ | 33,554 |
We record amortization expenses using the straight-line method over the estimated useful lives of the intangible assets, as noted above. Amortization expenses for the three months ended September 30, 2018 and 2017 were $2,447 and $1,341, respectively, included in Operating Expenses. Amortization expenses recorded in Cost of Sales were $437 and $106 for the three months ended September 30, 2018 and 2017, respectively. Amortization expenses for the nine months ended September 30, 2018 and 2017 were $6,038 and $3,230 included in Operating Expenses, and $1,171 and $319, respectively, included in Cost of Sales. The following table summarizes the future estimated amortization expense relating to our intangible assets as of September 30, 2018:
Calendar Years |  |  |  |
2018 (October to December) |  | $ | 2,838 |
2019 |  |  | 10,835 |
2020 |  |  | 9,999 |
2021 |  |  | 9,533 |
2022 |  |  | 9,207 |
2023 |  |  | 8,009 |
Thereafter |  |  | 24,417 |
Total |  | $ | 74,838 |
Developed Technology not yet in service |  |  | 985 |
Net Intangible Assets |  | $ | 75,823 |

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI http://asc.fasb.org/topic&trid=2144416 + Details
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