Note 4 - Goodwill and Intangible Assets

6 Months Ended

Jun. 30, 2018

Notes to Financial Statements

Goodwill and Intangible Assets Disclosure [Text Block]

4.

Goodwill and Intangible Assets

Due to a continued stock price decline, the Company’s market capitalization decreased to a value below the net book value of the Company’s net assets for the

three

and

six

months ended

June 30, 2018,

triggering the Company to perform an interim goodwill impairment test at that time. For the purposes of this goodwill impairment test, the Company estimated the fair value of its sole reporting unit using the market approach. Under the market approach, the Company utilized the market capitalization of its fully diluted common stock for

June 30, 2018,

and applied an estimated control premium based on an analysis of control premiums paid in acquisitions of companies in the same or similar industries as the Company. Because the significant inputs used in this analysis are readily available from public markets or can be derived from observable market transactions, they have been classified as level

2

within the fair value hierarchy. Based on this analysis, there was

no

impairment of goodwill recorded as of

June 30, 2018.

The goodwill activity for the

three

months ended

June 30, 2018

consisted of the following:

Balance at December 31, 2017	$	16,768
Foreign currency translation adjustments		(48	)
Balance at June 30, 2018	$	16,720

Intangible assets consisted of the following as of the dates presented:

	Estimated Useful Life (in years)			June 30, 2018			December 31,  2017
Developed technology	5	to	6	$	9,910		$	9,910
Customer relationships		4			3,370			3,370
Non-compete agreements and tradenames	2	to	3		1,390			1,390
Total intangible assets					14,670			14,670
Less: accumulated amortization					(11,536	)		(10,195	)
Intangible assets, net				$	3,134		$	4,475

Amortization of intangible assets was

$651

and

$721

for the

three

months ended

June 30, 2018

and

2017,

respectively, and

$1,341

and

$1,451

for the

six

months ended

June 30, 2018

and

2017,

respectively.

Future estimated amortization of intangible assets as of

June 30, 2018,

is presented below:

Remaining six months of 2018	$	1,196
Year ending December 31, 2019		1,843
Year ending December 31, 2020		95
Total	$	3,134