GOODWILL AND INTANGIBLE ASSETS

12 Months Ended

Apr. 30, 2013

Goodwill And Intangible Assets [Abstract]

NOTE 5 - GOODWILL AND INTANGIBLE ASSETS

As a result of its annual step one testing for goodwill impairment, the Company determined that the carrying value of Pride, included in the Company’s Australia Operations, exceeded its fair value, thus failing the first step of the goodwill impairment test, primarily driven by current operating results and economic climate in Pride’s operations. The Company performed the step one goodwill impairment analysis using Level 3 measurement as defined in the ASC. The Level 3 measurements were based on significant inputs not observable in the market. These measurements included a discounted cash flow valuation technique, using an estimated discount rate of 15.6%, future short and long-term revenue growth rates ranging from 2.5% to 3.0%, gross margin of 30%, and selling general and administrative expenses ranging from 25% to 29% of revenue. Based on the results of the step one testing, the Company completed the second step of the goodwill impairment test, which included calculating an implied fair value of the goodwill of Pride, by allocating the fair values of substantially all of its individual assets, liabilities and identified intangible assets, as if the reporting units had been acquired in a business combination, which resulted in no allocation of fair value to goodwill. As a result, the Company recorded a goodwill impairment charge of approximately $1,936,000 in the fourth quarter of fiscal 2013 ended April 30, 2013. This impairment charge is a noncash charge that does not impact our consolidated cash flows.

Goodwill through the years ended April 30, 2013 and 2012 consisted of the following:

	Wireless		Specialty		Electrical
	Communication		Construction		Power		Total

Beginning balance, May 1, 2011	$	-	$	-	$	2,044,856	$	2,044,856

Foreign currency translation adjustments		-		-		(114,030)		(114,030)

Ending balance, April 30, 2012		-		-		(1,930,826)		(1,930,826)

Goodwill impairment		-		-		(1,936,059)		(1,936,059)
Foreign currency translation adjustments		-		-		5,233		5,233

Ending balance, April 30, 2013	$	-	$	-	$	-	$	-

Other intangible assets consist of the following at April 30:

	Estimated useful life	April 30,		April 30,
	(years)	2013		2012

Customer list	3-9	$	1,975,527	$	2,961,799
Less accumulated amortization			(1,724,895)		(2,579,895)
			250,632		381,904

Contract backlog	1-3		1,035,364		1,034,787
Less accumulated amortization			(1,035,364)		(1,033,839)
			-		948

Totals		$	250,632	$	382,852

Amortization expense for other intangible assets for the years ended April 30, 2013 and 2012 was approximately $133,000 and $159,000, respectively.

There are no expected residual values related to these intangible assets. Estimated future amortization expense by fiscal year is as follows:

Year ending April 30,

2014	$	83,200
2015		66,973
2016		66,973
2017		33,486
Total Intangible Assets	$	250,632

The weighted-average amortization period of the intangible assets is 3.3 years.

- 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.

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