Quarterly report pursuant to Section 13 or 15(d)

Note 5 - Other Intangible Assets and Goodwill

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Note 5 - Other Intangible Assets and Goodwill
9 Months Ended
Sep. 30, 2014
Disclosure Text Block [Abstract]  
Intangible Assets Disclosure [Text Block]

5.

Other Intangible Assets and Goodwill


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


           

September 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     $ 528     $ (158 )   $ 370     $ 514     $ (155 )   $ 359  

Software

        372       (305 )     67       379       (258 )     121  

Non-compete agreement

  1.2        265       (265 )           265       (174 )     91  

Customer contracts

  .5        790       (790 )           790       (790 )      

Customer relationships

  12        3,370       (1,242 )     2,128       3,370       (961 )     2,409  

Total

          $ 5,325     $ (2,760 )   $ 2,565     $ 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)

    $ 117          
          2015       459          
         

2016

      419          
         

2017

      385          
         

2018

      355          
                  $ 1,735          

Amortization expense relating to intangible assets and our one definite-lived permit for the Company was $149,000 and $501,000 for the three and nine months ended September 30, 2014, respectively, and $185,000 and $528,000 for the three and nine months ended September 30, 2013, respectively.


Goodwill Impairment


On April 3, 2014, the Company’s Board approved management to pursue the sale of our SYA subsidiary. As permitted by ASC Topic 350 “Intangibles – 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. On July 29, 2014, the Company completed the divestiture of SYA (see Note 4 – “Divestitures and Discontinued Operations – Divestiture of SYA”). The Company determined that there was no change in the estimated goodwill impairment recorded above upon the divestiture of SYA on July 29, 2014.


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.