Intangible Assets

6 Months Ended

Mar. 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets Disclosure [Text Block]

Note 5 – Intangible Assets

Intangible assets at March 31, 2017 and September 30, 2016 consist of the following:

	Useful	Gross		Accumulated
March 31, 2017	Life (years)	Amount		Amortization		Net
Acquired Customer Base	5 to 15	$	691,000	$	487,000	$	204,000
Know How	15		512,000		299,000		213,000
Trade Names	Indefinite		261,000		-		261,000
Patents	20		389,000		10,000		379,000
Biomedical Technologies	5		260,000		260,000		-
		$	2,113,000	$	1,056,000	$	1,057,000

	Useful	Gross		Accumulated
September 30, 2016	Life (years)	Amount		Amortization		Net
Acquired Customer Base	5 to 15	$	718,000	$	473,000	$	245,000
Know How	15		512,000		282,000		230,000
Trade Names	Indefinite		272,000		-		272,000
Patents	20		326,000		6,000		320,000
Biomedical Technologies	5		260,000		260,000		-
		$	2,088,000	$	1,021,000	$	1,067,000

Amortization expense for the three months ended March 31, 2017 and 2016 was $26,000 and $43,000, respectively. Amortization expense for the six months ended March 31, 2017 and 2016 was $52,000 and $86,000, respectively.

Estimated amortization expense for each of the next five fiscal years and thereafter is as follows:

	2017 (6 months)		2018		2019		2020		2021		Thereafter		Total
Acquired Customer Base	$	40,000	$	80,000	$	84,000	$	-	$	-	$	-	$	204,000
Know How		17,000		34,000		34,000		34,000		34,000		60,000		213,000
Patents		4,000		9,000		9,000		9,000		9,000		80,000		120,000
	$	61,000	$	123,000	$	127,000	$	43,000	$	43,000	$	140,000	$	537,000

As of March 31, 2017, Xcede had $259,000 in patents that have not been granted, therefore, the amortization related to these patents is not included in the five-year amortization table above.

The Company continually assesses whether events or changes in circumstances have occurred that may warrant revision of the estimated useful lives of its long-lived assets or whether the remaining balances of those assets should be evaluated for possible impairment. There were no changes in the carrying value of the long-lived assets, aside from current additions and foreign exchange rate fluctuations, during the six months ended March 31, 2017.