Annual report pursuant to Section 13 and 15(d)

Note 4 - Permit and Other Intangible Assets

Note 4 - Permit and Other Intangible Assets

12 Months Ended

Dec. 31, 2015

Notes to Financial Statements

Intangible Assets Disclosure [Text Block]

NOTE 4

PERMIT AND OTHER INTANGIBLE ASSETS

The following table summarizes changes in the carrying amount of permits. No permit exists at our Services Segment.

Permit (amount in thousands)	Treatment
Balance as of December 31, 2013	$	16,744
PCB permit amortized (1)		(55	)
Permit in progress		20
Balance as of December 31, 2014		16,709
PCB permit amortized (1)		(55	)
Permit in progress		107
Balance as of December 31, 2015	$	16,761

(1)

Amortization for the one definite-lived permit capitalized in 2009. This permit is being amortized over a ten year period in accordance with its estimated useful life. Net carrying value of this permit was approximately $172,000 and $227,000 as of December 31, 2015 and 2014, respectively.

The following table summarizes information relating to the Company’s definite-lived intangible assets:

				December 31, 2015							December 31, 2014
	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	$	539	$	(203	)	$	336	$	512	$	(168	)	$	344
Software		3			395		(364	)		31		375		(319	)		56
Customer relationships		12			3,370		(1,671	)		1,699		3,370		(1,335	)		2,035
Permit		10			545		(373	)		172		545		(318	)		227
Total				$	4,849	$	(2,611	)	$	2,238	$	4,802	$	(2,140	)	$	2,662

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 (including the one definite-lived permit):

	Amount
Year	(In thousands)

2016	$	412
2017		366
2018		335
2019		256
2020		221
	$	1,590

Amortization expense recorded for definite-lived intangible assets for the Company was approximately $471,000 and $638,000, for the years ended December 31, 2015 and 2014, respectively.

As of December 31, 2015 and 2014, the Company has no goodwill. In 2014, the Company recorded an impairment charge of $380,000 in connection with the sale of our SYA subsidiary on July 29, 2014, in accordance with ASC Topic 350 “Intangible – Goodwill and Other” (“ASC 350”).

The impairment charges recorded were non-cash 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.