INTANGIBLE ASSETS

3 Months Ended

Mar. 31, 2014

NOTE 6 — INTANGIBLE ASSETS

Intangible assets represent the fair value assigned to definite-lived assets such as trade names and customer relationships as part of the Company’s acquisition of Brad Foote completed during 2007. Intangible assets are amortized on a straight-line basis over their estimated useful lives, which range from 10 to 20 years. The Company tests intangible assets for impairment when events or circumstances indicate that the carrying value of these assets may not be recoverable. During the first quarter of 2014, the Company identified triggering events associated with the Company’s current period operating loss combined with its history of continued operating losses. As a result, the Company evaluated the recoverability of certain of its identifiable intangible assets. Based upon the Company’s assessment, the recoverable amount was in excess of the carrying amount of the intangible assets, and no impairment to these assets was indicated as of March 31, 2014.

As of March 31, 2014 and December 31, 2013, the cost basis, accumulated amortization and net book value of intangible assets were as follows:

	March 31, 2014								December 31, 2013
								Weighted								Weighted
						Net		Average						Net		Average
	Cost		Accumulated			Book		Amortization	Cost		Accumulated			Book		Amortization
	Basis		Amortization			Value		Period	Basis		Amortization			Value		Period
Intangible assets:
Customer relationships	$	3,979	$	(3,606	)	$	373	7.2	$	3,979	$	(3,595	)	$	384	7.2
Trade names	7,999		(2,580		)	5,419		20.0	7,999		(2,480		)	5,519		20.0

Intangible assets	$	11,978	$	(6,186	)	$	5,792	15.8	$	11,978	$	(6,075	)	$	5,903	15.8

As of March 31, 2014, estimated future amortization expense is as follows:

2014	$	333
2015	444
2016	444
2017	444
2018	444
2019 and thereafter	3,683
Total	$	5,792