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5. Goodwill and Other Intangible Assets
 12 Months Ended
Dec. 31, 2012
Goodwill And Other Intangible Assets  
NOTE 5. Goodwill and Other Intangible Assets

The Company’s goodwill balance relates to the purchase of NTN Canada. The Company performed its annual qualitative assessment of goodwill impairment for NTN Canada as of December 31, 2012, and it was determined that there were no indications of impairment.

 

The Company also has other intangible assets comprised predominantly of developed technology, trivia databases, trademarks, and acquired customer relationships. As of December 31, 2011, the Company determined that the underlying customer base of the subscription customer intangible asset related to its acquisition in 2009 of substantially all of the assets of i-am TV had diminished to such a level that the future cash flow of the remaining customers did not substantially equal the remaining net book value of the asset. As a result, the Company accelerated the amortization expense of approximately $187,000 for those customers who terminated so that the net book value as of December 31, 2011 approximately equaled the future cash flow of the remaining i-am TV customers. As of December 31, 2012, there were no indications of impairment on the Company’s intangible assets.

 

The weighted average remaining useful life for all intangible assets is 1.5 years as of December 31, 2012. Amortization expense relating to all intangible assets totaled $378,000 and $614,000 for the years ended December 31, 2012 and 2011, respectively.

 

As of December 31, 2012 and 2011, intangible assets with estimable lives were comprised of the following:

 

    December 31, 2012     December 31, 2011  
    Gross Carrying
Value		     Accumulated
Amortization		     Net Book
Value		     Gross Carrying
Value		     Accumulated
Amortization		     Net Book
Value		  
Acquired customer lists   $ 545,000     $ (174,000 )   $ 371,000     $ 435,000     $ (24,000 )   $ 411,000  
Acquired technology     599,000       (440,000 )     159,000       599,000       (322,000 )     277,000  
Trivia database     448,000       (405,000 )     43,000       438,000       (352,000 )     86,000  
Acquired subscription customers     874,000       (868,000 )     6,000       874,000       (803,000 )     71,000  
Trademarks and trademark licenses     67,000       (67,000 )     –       67,000       (67,000 )     –  
Acquired advertising customers     302,000       (302,000 )     –       302,000       (302,000 )     –  
Total   $ 2,835,000     $ (2,256,000 )   $ 579,000     $ 2,715,000     $ (1,870,000 )   $ 845,000  

  

The estimated aggregate amortization expense relating to the Company’s intangible assets for the five succeeding years is as follows:

 

Year Ending     Estimated Aggregate
Amortization Expense		  
2013     $ 419,000  
2014       160,000  
Thereafter       –  
  Total     $ 579,000