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4. IDENTIFIED INTANGIBLE ASSETS | 12 Months Ended
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Dec. 31, 2016
Disclosure Text Block [Abstract] |
Intangible Assets Disclosure [Text Block] |
| 4. | IDENTIFIED INTANGIBLE ASSETS
A schedule of identified intangible assets is as follows:
|  | Gross |  |  | Accumulated |  |  | Carrying |
December 31, 2016 |  | Amount |  |  | Amortization |  |  | Amount |
Trademarks |  |  |  |  |  |  |  |  |  |  |  |
Wholesale |  | $ | 29,343,578 |  |  | $ | - |  |  | $ | 29,343,578 |
Retail |  |  | 2,900,000 |  |  |  | - |  |  |  | 2,900,000 |
Patents |  |  | 2,595,477 |  |  |  | 2,376,694 |  |  |  | 218,783 |
Customer Relationships |  |  | 2,200,000 |  |  |  | 1,246,667 |  |  |  | 953,333 |
Total Intangibles |  | $ | 37,039,055 |  |  | $ | 3,623,361 |  |  | $ | 33,415,694 |
|  | Gross |  |  | Accumulated |  |  | Carrying |
December 31, 2015 |  | Amount |  |  | Amortization |  |  | Amount |
Trademarks |  |  |  |  |  |  |  |  |  |  |  |
Wholesale |  | $ | 32,343,578 |  |  | $ | - |  |  | $ | 32,343,578 |
Retail |  |  | 2,900,000 |  |  |  | - |  |  |  | 2,900,000 |
Patents |  |  | 2,595,477 |  |  |  | 2,324,515 |  |  |  | 270,962 |
Customer Relationships |  |  | 2,200,000 |  |  |  | 1,166,667 |  |  |  | 1,033,333 |
Total Intangibles |  | $ | 40,039,055 |  |  | $ | 3,491,182 |  |  | $ | 36,547,873 |
Amortization expense related to finite-lived intangible assets was approximately $132,000, $135,000, and $135,000 in 2016, 2015 and 2014, respectively. Such amortization expense will be approximately $116,000 per year for 2017 through 2021. The weighted average lives of patents and customer relationships are 6 years. Intangible assets, including trademarks and patents are reviewed for impairment annually, and more frequently, if necessary. We perform such testing of indefinite-lived intangible assets in the fourth quarter of each year or as events occur or circumstances change that would more likely than not reduce the fair value of the asset below its carrying amount. Fair value of other indefinite-lived intangible assets is determined using the relief from royalty method. In assessing whether indefinite-lived intangible assets are impaired, we must make certain estimates and assumptions regarding future cash flows, long-term growth rates of our business, operating margins, weighted average cost of capital and other factors such as; discount rates, royalty rates, cost of capital, and market multiples to determine the fair value of our assets. These estimates and assumptions require management’s judgment, and changes to these estimates and assumptions could materially affect the determination of fair value and/or impairment for each of our indefinite-lived intangible assets. Future events could cause us to conclude that indications of intangible asset impairment exist. Impairment may result from, among other things, deterioration in the performance of our business, adverse market conditions, adverse changes in applicable laws and regulations, competition, or the sale or disposition of a reporting segment. Any resulting impairment loss could have a material adverse impact on our financial condition and results of operations. We evaluate our finite and indefinite lived trademarks under the terms and provisions of the accounting standards for “Intangibles - Goodwill and Other”; and “Property, Plant and Equipment.” These pronouncements require that we compare the fair value of an intangible asset with its carrying amount. The results of our 2016 indefinite-lived intangible impairment test for the Creative Recreation trademark indicated a carrying value in excess of the fair value based on the Company’s outlook for future operating results. Accordingly, we recorded a $3,000,000 non-cash impairment charge for the Creative Recreation trademark in the fourth quarter of 2016. The carrying value of the Creative Recreation trademark indefinite-lived intangible assets was $2.1 million, as of December 31, 2016. We did not recognize any impairment charges during 2015 or 2014 for intangible assets, as the annual impairment testing indicated that all reporting unit intangible asset fair values exceeded their respective carrying values.

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