Goodwill and Other Intangible Assets

6 Months Ended

Jun. 30, 2011

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure [Text Block]

Note 6: Goodwill and Other Intangible Assets

The changes in the carrying amounts of goodwill from December 31, 2010 to June 30, 2011 were as follows:

	CoaLogix segment*		Energy & Sonar Security Solutions segment		GridSense segment		USSI segment		Total
Balance as of December 31, 2010	$	3,714	$	568	$	2,709	$	1,402	$	8,393
Translation adjustment		—		22		125		—		147
Balance as of June 30, 2011	$	3,714	$	590	$	2,834	$	1,402	$	8,540

* See Note 12 – Subsequent Events

The changes in the carrying amounts and accumulated amortization of intangible assets from December 31, 2010 to June 30, 2011 were as follows:

	CoaLogix segment***						Energy & Sonar Security Solutions segment					GridSense segment					USSI segment
	SCR Technologies**						Naval Technologies					Software & Customer Relationships					Sensor Technologies
	Cost			A.A.*			Cost		A.A.*			Cost		A.A.*			Cost		A.A.*			Total
Balance as of December 31, 2010	$	5,701		$	(1,739	)	$	560	$	(207	)	$	2,747	$	(220	)	$	2,565	$	(107	)	$	9,300
Additions		750			—			—		—			—		—			—		—			750
Amortization		—			(287	)		—		(41	)		—		(162	)		—		(64	)		(554	)
Write-off of license		(82	)		8			—		—			—		—			—		—			(74	)
Cumulative translation adjustment		—			—			22		(13	)		75		(9	)		—		—			75
Balance as of June 30, 2011	$	6,369		$	(2,018	)	$	582	$	(261	)	$	2,822	$	(391	)	$	2,565	$	(171	)	$	9,497

* Accumulated amortization

** SCR Technologies includes regeneration, rejuvenation and on-site cleaning technologies, Use Rights and rights of first refusal (see below).

*** See Note 12 – Subsequent Events

On June 23, 2011, SCR-Tech LLC (“SCR”) a subsidiary of CoaLogix signed a cooperation agreement with Ebinger Katalysatorservice GmbH Co. KG (“Ebinger”), a company in Germany. Ebinger is one of the developers of catalyst regeneration technology, currently operating in Europe with a licensee in Korea for the countries South Korea, China and Taiwan. Under the agreement, SCR agreed to pay $750 in two installments of $375 ($375 in July 2011 and $375 in January 2012) in exchange for the grant to SCR and its related companies to exclusively use, subject to the South Korean licensee’s rights, certain technology in China (Use Rights) and the right of first refusal to acquire a majority interest of the equity ownership or assets of Ebinger. The Company has allocated $550 to the Use Rights (which will be amortized over the seven year exclusivity period) and $200 to the right of first refusal (which will be amortized over the three year life of the right of first refusal). The Use Rights continue beyond the seven-year period as non-exclusive rights.

In April 2010, CoaLogix signed an agreement to acquire a license to use certain technology developed by a third-party for $82. The license agreement was terminated by CoaLogix in May 2011. Accordingly, CoaLogix wrote-off the $74 unamortized balance of the license.

All intangible assets are being amortized over their estimated useful lives, whose weighted average lives were estimated to be ten years for CoaLogix SCR Technologies, seven years for Naval Technologies, ten years for GridSense Software and Customer Relationships and twenty years for USSI Sensor Technologies. Amortization expense for each of the six months ended June 30, 2010 and 2011 amounted to $405 and $554, respectively. Amortization expense with respect to intangible assets is estimated to be $1,243, $1,227, $1,178, $1,061 and $989 for each of the years ending June 30, 2012 through 2016.

- 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.

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