Intangible Assets

6 Months Ended

Mar. 31, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets Disclosure [Text Block]

Note 5 – Intangible Assets

Intangible assets at March 31, 2018 and September 30, 2017 consist of the following:

	Useful	Gross		Accumulated
March 31, 2018	Life (years)	Amount		Amortization		Net
Acquired Customer Base	5 to 15	$	768,000	$	607,000	$	161,000
Know How	15		512,000		333,000		179,000
Trade Names	Indefinite		293,000		-		293,000
Patents	20		378,000		14,000		364,000
Biomedical Technologies	5		260,000		260,000		-
		$	2,211,000	$	1,214,000	$	997,000

	Useful	Gross		Accumulated
September 30, 2017	Life (years)	Amount		Amortization		Net
Acquired Customer Base	5 to 15	$	737,000	$	551,000	$	186,000
Know How	15		512,000		316,000		196,000
Trade Names	Indefinite		281,000		-		281,000
Patents	20		333,000		9,000		324,000
Biomedical Technologies	5		260,000		260,000		-
		$	2,123,000	$	1,136,000	$	987,000

Amortization expense for the three months ended March 31, 2018 and 2017 was $28,000 and $26,000, respectively. Amortization expense for the six months ended March 31, 2018 and 2017 was $56,000 and $52,000, respectively.

 

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

	2018 (6 months)		2019		2020		2021		2022		Thereafter		Total
Acquired Customer Base	$	40,000	$	80,000	$	41,000	$	-	$	-	$	-	$	161,000
Know How		17,000		34,000		34,000		34,000		34,000		26,000		179,000
Patents		6,000		11,000		11,000		11,000		11,000		162,000		212,000
	$	63,000	$	125,000	$	86,000	$	45,000	$	45,000	$	188,000	$	552,000

As of March 31, 2018, Xcede had $152,000 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, aside from foreign exchange rate fluctuations, in the carrying value of long-lived assets, during the six months ended March 31, 2018.