Note 4 - Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure [Text Block]

4.           GOODWILL AND INTANGIBLE ASSETS

The Company’s goodwill represents the excess of the purchase price over the fair value of net identifiable assets acquired in various business combinations. The Company also has an indefinite-lived intangible consisting of a tradename. Goodwill and intangible assets deemed to have indefinite lives are not amortized and are tested for impairment on an annual basis during our fourth quarter, or more frequently if circumstances indicate impairment might exist. Goodwill is evaluated for impairment through the comparison of fair value of our reporting units to their carrying values. When evaluating goodwill for impairment, we may first perform an assessment of qualitative factors to determine if the fair value of the reporting unit is more-likely-than-not greater than its carrying amount. This qualitative assessment is referred to as a "step zero" approach.  If, based on the review of the qualitative factors, we determine it is not more-likely-than-not that the fair value of a reporting unit is less than its carrying value, we bypass the required two-step impairment test. If we do not perform a qualitative assessment or if the fair value of the reporting unit is not more-likely- than-not greater than its carrying value, we perform the first step, which is referred to as step one, of the two-step impairment test, and calculate the estimated fair value of the reporting unit. If the carrying value of goodwill exceeds the estimated fair value, there is an indication that impairment may exist and the second step must be performed to measure the amount of impairment loss. The amount of impairment is determined by comparing the implied fair value of the reporting unit goodwill to the carrying value of the goodwill in the same manner as if the reporting unit was being acquired in a business combination. If the implied fair value of goodwill is less than the recorded goodwill, we would record an impairment loss for the difference. In considering the step zero approach to testing goodwill for impairment, we perform a qualitative analysis evaluating factors including, but not limited to, macro-economic conditions, market and industry conditions, internal cost factors, competitive environment, share price fluctuations, results of past impairment tests, and the operational stability and the overall financial performance of the reporting units. During the fourth quarter of fiscal 2013, we utilized a qualitative assessment for our reporting units where no significant change occurred and no potential impairment indicators existed since the previous evaluation of goodwill and indefinite-lived intangibles, and concluded it is more-likely-than-not that the fair values were more than their carrying value on a reporting unit basis. As we did not become aware of any impairment indicators subsequent to the date of the annual assessment, we determined there was no impairment to the goodwill of $18.9 million or the indefinite-lived intangible of $1.9 million as of December 31, 2013.

The components and estimated useful lives of intangible assets as of December 31, 2013 and 2012 are stated below. Amortization is provided on a straight line method, or in the case of customer relationships, on an accelerated method, over the following estimated useful lives (in thousands):

	2013
	Gross		Accumulated		Net			Estimated
	Amount		Amortization		Amount		Useful Life (years)
Definite-lived intangibles:
Customer relationships	$	6,570	$	1,512	$	5,058		10
Tradenames		1,104		153		951		15
Proprietary technology		1,420		403		1,017	10	-	15
Non-compete agreement		25		25		-		3
Domain name and related website		53		11		42	10	-	15
		9,172		2,104		7,068
Indefinite-lived intangibles:
Tradename		1,900		-		1,900
	$	11,072	$	2,104	$	8,968

	2012
	Gross		Accumulated		Net			Estimated
	Amount		Amortization		Amount			Useful Life (years)
Tradenames	$	304	$	101	$	203	-	15	-
Proprietary technology		620		310		310		10
Non-compete agreement		25		25		-		3
Customer relationships		170		138		32		10
Domain name and related website		23		9		14		15
	$	1,142	$	583	$	559

The activity in our goodwill balance consists of the following (in thousands):

Balance at January 1, 2013	$	2,066
Acquisitions:
Hego AB		16,321
Granvideo AB		561
Balance at December 31, 2013	$	18,948

Amortization expense related to intangible assets for the years ended December 31, 2013 and 2012 was $1.52 million and $99 thousand, respectively. Annual amortization expense, in thousands, for intangible assets over the next five years ending December 31 is summarized as follows (in thousands):

2014	$	1,325
2015		1,124
2016		959
2017		824
2018		617
Thereafter		2,219