Note 2 - Supplemental Balance Sheet Information

9 Months Ended

Sep. 30, 2019

Notes to Financial Statements

Supplemental Balance Sheet Disclosures [Text Block]

Note

2

– Supplemental Balance Sheet Information

Receivables

Contract and other receivables consisted of the following (in

‘000’s

):

	September 30 , 2019			December 31, 2018
Contract and other receivables	$	864		$	735
Allowance for doubtful accounts		(8	)		(8	)
Contracts and other receivables, net	$	856		$	727

Inventor

ies

We state inventories at the lower of cost or net realizable value, using the

first

-in-

first

-out-method (in

‘000’s

) as follows:

	September 30 , 2019			December 31, 2018
Raw materials	$	155		$	110
Reseller inventories		1,032			-
Reserve		(2	)		(2	)
Inventories, net	$	1,185		$	108

Goodwill and Intangible Assets

, net

Goodwill and Intangible Assets, net consisted of the following (in

‘000’s

):    

	September 30 , 201 9					December 31, 201 8
	Gross					Gross
	Carrying		Accumulated			Carrying		Accumulated
	Amount		Amortization			Amount		Amortization
Intangible assets not subject to amortization:
Goodwill	$	780		-		$	780		-
Intangible assets subject to amortization:
Customer relationships	$	906	$	(576	)	$	906	$	(508	)
Acquired software	$	234	$	(234	)	$	234	$	(234	)

We recognized amortization expense related to intangibles of approximately

$22,000

and

$24,000

for the

three

-month periods ended

September 30, 2019

and

2018,

respectively. We recognized amortization expense related to intangibles of approximately

$68,000

and

$91,000

for the

nine

-month periods ended

September 30, 2019

and

2018,

respectively.

We have elected to use

December 31

as our annual date to test goodwill and intangibles for impairment. As circumstances change that could affect the recoverability of the carrying amount of the assets during an interim period, we will evaluate its indefinite lived intangible assets for impairment. We performed a quantitative analysis of our goodwill and intangibles at

December 31, 2018

as part of our annual testing for impairment and concluded that there was

no

impairment. There were

no

identified triggering events or circumstances that occurred during the

three

and

nine

-months period ended

September 30, 2019

that would have required an interim impairment analysis of our goodwill and other long-lived intangible assets.

Property and Equipment

Property and equipment consisted of the following (in

’000’s

):

	Estimated Useful			September 30 ,			December 31 ,
	Lives (in years)			201 9			201 8
Trade equipment		5		$	105		$	102
Leasehold improvements	2	–	5		393			250
Furniture and fixtures		7			16			16
Computer equipment and software		3			1,754			1,599
					2,268			1,967
Less accumulated depreciation					(1,753	)		(1,577	)
Property and equipment, net				$	515		$	390

Depreciation of property and equipment and amortization of leasehold improvements and software totaled

$62,000

and

$65,000

for the

three

-month periods ended

September 30, 2019

and

2018,

respectively. Depreciation of property and equipment and amortization of leasehold improvements and software totaled

$176,000

and

$206,000

for the

nine

-month periods ended

September 30, 2019

and

2018,

respectively.

Accounts Payable and Accrued Expenses

Accounts payable and accrued expenses consisted of the following (in

’000’s

):

	September 30 , 2019		December 31, 2018
Accounts payable	$	1,981	$	944
Accrued expenses		912		566
Compensation, benefits & related taxes		301		856
Other accrued expenses		13		24
Total accounts payable and accrued expenses	$	3,207	$	2,390