Note 5 – Intangible Assets

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

	Useful	Gross		Accumulated
June 30, 2017	Life (years)	Amount		Amortization		Net
Acquired Customer Base	5 to 15	$	716,000	$	519,000	$	197,000
Know How	15		512,000		307,000		205,000
Trade Names	Indefinite		271,000		-		271,000
Patents	20		404,000		10,000		394,000
Biomedical Technologies	5		260,000		260,000		-
		$	2,163,000	$	1,096,000	$	1,067,000

	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 June 30, 2017 and 2016 was $24,000 and $43,000, respectively. Amortization expense for the nine months ended June 30, 2017 and 2016 was $75,000 and $129,000, respectively.

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

	2017 (3 months)		2018		2019		2020		2021		Thereafter		Total
Acquired Customer Base	$	20,000	$	80,000	$	97,000	$	-	$	-	$	-	$	197,000
Know How		9,000		34,000		34,000		34,000		34,000		60,000		205,000
Patents		3,000		12,000		12,000		12,000		12,000		188,000		239,000
	$	32,000	$	126,000	$	143,000	$	46,000	$	46,000	$	248,000	$	641,000

As of June 30, 2017, Xcede had $155,000 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 three and nine months ended June 30, 2017.