Goodwill

The Company tests goodwill for impairment annually during its first fiscal quarter, referred to as the annual test date. The Company will also test for impairment between annual test dates if an event occurs or circumstances change that would indicate the carrying amount may be impaired. During the three months ended September 30, 2014, the Company has not identified any events or circumstances that would require an interim goodwill impairment test.

The Company does not amortize goodwill as it has been determined to have an indefinite useful life.

Goodwill by reporting unit consists of the following:



	March 31, 2014		September 30, 2014
QSI Dental Division (1)	$	7,289	$	7,289
NextGen Division	33,225		33,225
RCM Services Division	32,290		32,290
Total goodwill	$	72,804	$	72,804

(1) QSI Dental Division goodwill is presented on a basis consistent with that of the management reporting structures within QSI. For the purposes of testing goodwill for impairment annually and as otherwise may be required, however, the QSI Dental Division goodwill is allocated to all business units that derive cash flows from the products associated with the acquired goodwill. For all periods presented in this report, the allocation resulted in substantially all of such goodwill being ascribed to the NextGen Division.