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INTANGIBLE ASSETS, NET AND GOODWILL
 12 Months Ended
Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]  
INTANGIBLE ASSETS, NET & GOODWILL
NOTE 7 - INTANGIBLE ASSETS, NET & GOODWILL

Income approach was used to determine the fair value of the intangible assets and goodwill using Level 3 inputs under the fair value hierarchy. The goodwill and other intangible assets at December 31, 2016 and 2015 are summarized as follows:

 
 
            
Impairment provision,
        
 
            
Amortization and accumulated
        
 
      
Net Book
    
translation adjustments (“ATA”)
    
Net Book
  
 
Useful Life
    
Value
    
for the year ended
    
Value
  
 
(In Years)
    
December 31, 2015
    
December 31, 2016
    
December 31, 2016
  
                       
Customer Relationships
8.5
    
$
316
    
$
(316
)
  
$
-
  
Developed Technology
7
      
619
      
(619
)
    
-
  
In Process Technology
(a)
      
178
      
(178
)
    
-
  
Trade name
(a)
      
1,400
      
(1,400
)
    
-
  
Intangible assets
      
$
2,513
    
$
(2,513
)
  
$
-
  
 
                            
Goodwill
      
$
314
    
$
(314
)
  
$
-
  

 
 
(a)
The in-process technology and trade name have been determined to have an indefinite life.
 
As of December 31, 2015, the Company recognized an impairment loss of approximately $0.08 million for the trade name. The impairment loss was based on the fair value, which was based on the estimation of discounted cash flow.

During the year ended December 31, 2016, the Company experienced significant decrease of sales and enlarged operating loss due to multiple unexpected factors.  In 2016, the government reevaluated the policies on new energy vehicle subsidies and an “anti-subsidy” campaign was continuously practiced in 2016 and the payments of subsidies were reduced and delayed. The delay in subsidy payments by the central government for EV lithium batteries has created uncertainty the Company’s EV sales.  Without the fast turnaround on the subsidies for lithium batteries to support the working capital, the sales of Jonway Auto dropped substantially during fiscal 2016. In addition, all EV are now required to be re-evaluated for inclusion in a qualified catalog of models eligible for subsidies. But the updated catalog, which previously covered 2,193 models from 235 manufacturers, has yet to be published. In addition, the Company’s EV sales are largely dependent on the government’s subsidy and incentive. The temporary suspension and reexamination of the government subsidy program on EVs resulted in a significant drop in the Company sales in fiscal 2016. For the purpose of the impairment test, the Company applied fair-value-based impairment test on the intangibles and goodwill, similar to the review for impairment of other long-lived assets, and the resulting fair value determination is significantly impacted by estimates of future margins, capital needs, economic trends and other factors. If the carrying value of the reporting unit exceeds its fair value, an impairment loss would be recognized to the extent the carrying value of goodwill exceeds its implied fair value. As a result, the Company recognized an impairment loss of approximately $2.4 million for the intangibles and goodwill as of December 31, 2016. Income approach was used to value the fair value of these intangible assets.