Annual report pursuant to Section 13 and 15(d)

Intangible Assets

v3.8.0.1
Intangible Assets
12 Months Ended
Dec. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Disclosure [Text Block]
9.
Intangible Assets
 
The gross carrying amount and accumulated amortization of intangible assets are as follows (in thousands):
 
 
 
 
 
 
December 31, 2017
 
 
 
Useful Life
(Years)
 
Gross 
Amount
 
Accumulated 
Amortization
 
Impairment
 
Net 
Carrying 
Amount
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Technology
 
 
10
 
$
32,539
 
$
(12,083)
 
 
 
 
$
20,456
 
Customer relationships
 
 
9-12
 
 
1,984
 
 
(934)
 
 
 
 
 
1,050
 
Tradename
 
 
3
 
 
111
 
 
(111)
 
 
 
 
 
-
 
Tradename related to MIST Therapy (1)
 
 
3
 
 
1,913
 
 
(1,350)
 
 
 
 
 
563
 
Non-compete
 
 
1
 
 
208
 
 
(208)
 
 
-
 
 
-
 
Total intangible assets
 
 
 
 
 
36,755
 
 
(14,686)
 
 
-
 
 
22,069
 
  
 
 
 
 
December 31, 2016
 
 
 
Useful Life
(Years)
 
Gross 
Amount
 
Accumulated 
Amortization
 
Impairment
 
Net 
Carrying 
Amount
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Technology
 
10
 
$
32,539
 
$
(9,069)
 
$
-
 
$
23,470
 
Customer relationships
 
9-12
 
 
1,984
 
 
(762)
 
 
-
 
 
1,222
 
Tradename
 
3
 
 
111
 
 
(111)
 
 
-
 
 
-
 
Tradename related to MIST Therapy (1)
 
3
 
 
3,601
 
 
-
 
 
(1,688)
 
 
1,913
 
Non-compete
 
1
 
 
208
 
 
(208)
 
 
-
 
 
-
 
Total intangible assets
 
 
 
 
38,443
 
 
(10,150)
 
 
(1,688)
 
 
26,605
 
 
 
(1)
In December 2016, the Company determined the tradename related to MIST Therapy was no longer an indefinite-lived intangible asset. The Company assigned a remaining useful of approximately 1.5 years, consistent with the Company’s other trademarks.
 
The Company performs its assessment of the recoverability of indefinite-lived intangible assets annually during the fourth quarter, or more frequently as impairment indicators arise, and it is based upon a comparison of the carrying value of such assets to their estimated fair values. The Company performed its most recent annual assessment during the four quarter of 2017, which resulted in no impairment charge. During the year ended December 31, 2016 the Company recorded an impairment charge of approximately $1.7 million to the MIST Therapy tradename and is included in impairment charges in the consolidated statement of operations.
 
Amortization expense attributable to intangible assets for the years ended December 31, 2017 and 2016 was approximately $4.7 million and $3.5 million, respectively.
 
Amortization expense in each of the five years and thereafter subsequent to December 31, 2017 related to the Company’s intangible assets is expected to be as follows (in thousands):
 
 
 
Expected
 
 
 
Amortization
 
 
 
Expense
 
2018
 
$
3,748
 
2019
 
 
2,910
 
2020
 
 
2,885
 
2021
 
 
2,839
 
2022
 
 
2,835
 
Thereafter
 
 
6,852
 
 
 
 
 
 
Total
 
$
22,069