Quarterly report pursuant to Section 13 or 15(d)

Note 4 - Other Intangible Assets

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Note 4 - Other Intangible Assets
6 Months Ended
Jun. 30, 2014
Disclosure Text Block [Abstract]  
Intangible Assets Disclosure [Text Block]

4.

Other Intangible Assets and Goodwill


The following table summarizes information relating to the Company’s other intangible assets:


           

June 30, 2014

   

December 31, 2013

 
   

Useful

   

Gross

           

Net

   

Gross

           

Net

 
   

Lives

   

Carrying

   

Accumulated

   

Carrying

   

Carrying

   

Accumulated

   

Carrying

 
   

(Years)

   

Amount

   

Amortization

   

Amount

   

Amount

   

Amortization

   

Amount

 

Intangibles (amount in thousands)

                                                       

Patent

    8-18     $ 546     $ (169 )   $ 377     $ 514     $ (155 )   $ 359  

Software

    3       394       (305 )     89       379       (258 )     121  

Non-compete agreement

    1.2       265       (252 )     13       265       (174 )     91  

Customer contracts

    0.5       790       (790 )    

-

      790       (790 )    

-

 

Customer relationships

    12       3,370       (1,148 )     2,222       3,370       (961 )     2,409  

Total

          $ 5,365     $ (2,664 )   $ 2,701     $ 5,318     $ (2,338 )   $ 2,980  

The intangible assets are amortized on a straight-line basis over their useful lives with the exception of customer relationships which are being amortized using an accelerated method.


The following table summarizes the expected amortization over the next five years for our definite-lived intangible assets (which include the one definite-lived permit at our Diversified Scientific Services, Inc. (“DSSI”) subsidiary):


   

Amount

 

Year

 

(In thousands)

 
         

2014 (remaining)

  $ 246  

2015

    478  

2016

    419  

2017

    385  

2018

    355  
    $ 1,883  

Amortization expense relating to intangible assets noted above and our one definite-lived permit for the Company was $176,000 and $352,000 for the three and six months ended June 30, 2014, respectively, and $179,000 and $343,000 for the three and six months ended June 30, 2013, respectively.


Goodwill Impairment


On April 3, 2014, the Company’s Board of Directors (“Board”) approved management to pursue the sale of our SYA subsidiary. As permitted by ASC Topic 350 “Intangible – Goodwill and Other,” when an impairment indicator arises, the Company may recognize its best estimate of that impairment loss. Based on the Company’s preliminary analysis prepared as of June 30, 2014, the Company recorded a goodwill impairment charge of $380,000 during the three months ended June 30, 2014 for the SYA reporting unit. $950,000 of goodwill remains for this reporting unit.


During the second quarter of 2013, the Company recorded a goodwill impairment charge of $1,149,000 which represented the total goodwill for our CH Plateau Remediation Company (“CHPRC”) reporting unit, our operation under the CHPRC subcontract. This subcontract expired on September 30, 2013.


The impairment charges noted above are noncash in nature and did not affect our liquidity or cash flows from operating activities. Additionally, the goodwill impairment had no effect on our borrowing availability or covenants under our credit facility agreement.