Intangible Assets

12 Months Ended

Sep. 30, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets Disclosure [Text Block]

Note 6 – Intangible Assets

Intangible assets at September 30, 2014 and 2013 consist of the following:

	Useful	Gross		Accumulated
September 30, 2014	Life (years)	Amount		Amortization		Net
Acquired Customer Base	5 to 15	$	877,000	$	409,000	$	468,000
Know How	15		512,000		213,000		299,000
Trade Names	Indefinite		339,000		-		339,000
Patents	20		159,000		-		159,000
Biomedical Technologies	5		260,000		142,000		118,000
		$	2,147,000	$	764,000	$	1,383,000

	Useful	Gross		Accumulated
September 30, 2013	Life (years)	Amount		Amortization		Net
Acquired Customer Base	5 to 15	$	5,146,000	$	2,646,000	$	2,500,000
Know How	15		512,000		179,000		333,000
Trade Names	15 or Indefinite		548,000		76,000		472,000
Biomedical Technologies	5		300,000		120,000		180,000
		$	6,506,000	$	3,021,000	$	3,485,000

In the second quarter of 2013, as a result of a decision to dispose of a significant portion of the Products reporting unit, the Company performed an interim impairment test of long lived assets and goodwill associated with its Dynasil Products reporting unit. Under step two of the impairment testing, the income method was used to allocate the fair values of all of the assets and liabilities of this reporting unit, with the remaining residual fair value allocated to goodwill. The result of this impairment test was to write off $2.8 million of the Acquired Customer Base intangible asset.

Amortization expense for the years ended September 30, 2014 and 2013 was $175,000 and $492,000, respectively. Estimated amortization expense for each of the next five fiscal years is as follows:

	2015		2016		2017		2018		2019		Thereafter		Total
Acquired Customer Base	$	80,000	$	80,000	$	80,000	$	80,000	$	80,000	$	68,000	$	468,000
Know How		34,000		34,000		34,000		34,000		34,000		129,000		299,000
Patents		8,000		8,000		8,000		8,000		8,000		119,000		159,000
Biomedical Technologies		60,000		58,000		-		-		-		-		118,000
	$	182,000	$	180,000	$	122,000	$	122,000	$	122,000	$	316,000	$	1,044,000