Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure [Text Block]

Note 5 – Goodwill and Other Intangible Assets

At December 31, 2013, we had goodwill of $3.4 million, representing the excess of the purchase price paid for NeoMedia Europe GmbH over the fair value of the identifiable net assets and liabilities acquired, based on an independent appraisal of the assets and liabilities acquired. We performed the two step goodwill impairment test at December 31, 2014 and determined there was impairment of our goodwill as reflected on our balance sheet ($3,418,000). Our assessment conducted as of December 31, 2014 concluded that on a qualitative and quantitative basis there is impairment of goodwill on our balance sheet.

The following table summarizes other intangible assets:

					Total Intangibles
	Patents and Other		Proprietary		and Proprietary
	Intangibles		Software		Software
	(in thousands)
December 31, 2012	$	1,489	$	100	$	1,589

Amortization		(276)		(100)		(376)
December 31, 2013		1,213		-		1,213

Amortization		(266)		-		(266)
December 31, 2014	$	947	$	-	$	947

Weighted-average remaining amortization period in years		4.7		-

As of December 31, 2014, we estimate future amortization expense of intangible assets to be (in thousands):

2015	$	244
2016		216
2017		134
2018		134
2019		134
2020 and thereafter		85

Total future amortization expense	$	947

The following table summarizes amortization as of December 31, 2014:

		End of	Remaining		Preliminary Value at 12/31/14
	Date	Useful	Useful				Accum.		Net Book
Asset	Acquired	Life	Life (yrs.)		Cost		Depr/Amort		Value

Barcode Ecosystem:
Core Patents	Various	11/1/2016		1.9	$	5,250,839	$	(4,303,676)	$	947,163
Proprietary software	2/23/2006	2/23/2013		0	$	4,600,000	$	(4,600,000)		-
Copyrights	2/23/2006	2/23/2011		0	$	50,000	$	(50,000)		-
					$	9,900,839	$	(8,953,676)	$	947,163

The following table summarizes amortization as of December 31, 2013:

		End of	Remaining		Preliminary Value at 12/31/13
	Date	Useful	Useful				Accum.		Net Book
Asset	Acquired	Life	Life (yrs.)		Cost		Depr/Amort		Value

Barcode Ecosystem:
Core Patents	Various	11/1/2016		2.8	$	5,250,839	$	(4,037,353)	$	1,213,486
Proprietary software	2/23/2006	2/23/2013		0	$	4,600,000	$	(4,600,000)		-
Copyrights	2/23/2006	2/23/2011		0	$	50,000	$	(50,000)		-
					$	9,900,839	$	(8,687,353)	$	1,213,486

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References+ Details