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Note 4 - Goodwill and Other Intangible Assets | 12 Months Ended
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Dec. 31, 2020
Notes to Financial Statements |
Goodwill and Intangible Assets Disclosure [Text Block] | NOTE 4. GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill We evaluate the value of our goodwill annually as of October 1 st or more frequently such as when events or changes in circumstances indicate there may be an impairment. We test for impairment at the reporting unit level, which we had two reporting unit as of December 31, 2019 ( Devicix and EMS) and one reporting unit (Nortech) at December 31, 2020. All of our goodwill was derived from our acquisition of the Devicix business in 2015 which was fully consolidated and managed in our Nortech (EMS) reporting unit as of October 1, 2020. We determined that we had a single reporting unit at October 1, 2020 as a result of fully integrating our former Devicix acquisition into our EMS operations which included consolidating the financial reporting and management decision making to the single reporting unit and operating as a single business. As a result, we tested goodwill for impairment at the Nortech reporting unit as of October 1, 2020. In determining the nonrecurring fair value measurements of goodwill, we utilized a discounted cash flow approach. Our discounted cash flow model includes assumptions related to our product revenue, gross margins, operating margins and other assumptions along with a weighted average cost of capital that is a combination of the risk free rate coupled with our company specific risk premium. In our goodwill impairment test as of October 1, 2020, we concluded that goodwill was impaired due to a significant reduction of results from operations during the fourth quarter of 2020 that was more than expected suggesting a greater impact of the COVID- 19 pandemic and took a $2,375 impairment loss, which fully impaired our remaining goodwill. We determined there was no impairment of goodwill during the year ended December 31, 2019. The cumulative goodwill impairment loss is $3,283 and $908 as of December 31, 2020 and 2019, respectively. Other Intangible Assets Finite life intangible assets at December 31, 2020 and 2019 are as follows:
|  | December 31, 2020 |
|  |  |  |  |  | Gross |  |  | Accumulated |  |  | Net Book |
|  |  |  |  |  | Carrying |  |  | Amortization |  |  | Value |
|  | Years |  |  | Amount |  |  | Amount |  |  | Amount |
Customer Relationships |  |  | 9 |  |  | $ | 1,302 |  |  | $ | 795 |  |  | $ | 507 |
Intellectual Property |  |  | 3 |  |  |  | 100 |  |  |  | 100 |  |  |  | - |
Trade Names |  |  | 20 |  |  |  | 814 |  |  |  | 225 |  |  |  | 589 |
Other |  |  | 7 |  |  |  | 77 |  |  |  | - |  |  |  | 77 |
Totals |  |  |  |  |  | $ | 2,293 |  |  | $ | 1,120 |  |  | $ | 1,173 |
|  | December 31, 2019 |
|  |  |  |  |  | Gross |  |  | Accumulated |  |  | Net Book |
|  |  |  |  |  | Carrying |  |  | Amortization |  |  | Value |
|  | Years |  |  | Amount |  |  | Amount |  |  | Amount |
Customer Relationships |  |  | 9 |  |  | $ | 1,302 |  |  | $ | 651 |  |  | $ | 651 |
Intellectual Property |  |  | 3 |  |  |  | 100 |  |  |  | 95 |  |  |  | 5 |
Trade Names |  |  | 20 |  |  |  | 814 |  |  |  | 183 |  |  |  | 631 |
Other |  |  | 7 |  |  |  | 56 |  |  |  | - |  |  |  | 56 |
Totals |  |  |  |  |  | $ | 2,272 |  |  | $ | 929 |  |  | $ | 1,343 |
Amortization of finite life intangible assets was $191 and $219 for the years ended December 31, 2020 and 2019, respectively. Estimated future annual amortization expense (except projects in process) related to these assets is approximately as follows:
Year |  | Amount |
2021 |  | $ | 185 |
2022 |  |  | 185 |
2023 |  |  | 185 |
2024 |  |  | 113 |
2025 |  |  | 41 |
Thereafter |  |  | 387 |
Total |  | $ | 1,096 |
In the fourth quarter of 2020, we evaluated that there was a trigger event, largely driven by the ongoing impact of COVID- 19, that indicated that the carrying amount of our long-lived assets may not be recoverable. We performed the recoverability test of our undiscounted cash flow forecast over the life of our primary asset and determined there was no impairment. We completed our qualitative assessment of our long lived assets as of December 31, 2019 and concluded it is more likely than not that our finite-lived intangible and other long lived assets were not impaired.

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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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