GOODWILL AND OTHER INTANGIBLE ASSETS

3 Months Ended

Mar. 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure [Text Block]

NOTE 8 – GOODWILL AND OTHER INTANGIBLE ASSETS

Changes in the carrying amount of goodwill are as follows:

Balance, January 1, 2017	$	3,897,000
Currency translation adjustment		2,000
Balance, March 31, 2017	$	3,899,000

Other intangible assets were as follows:

	March 31, 2017						December 31, 2016
			Accumulated		Net book				Accumulated		Net book
	Cost		amortization		value		Cost		amortization		value
Other intangible assets:
Customer relationships (1)	$	5,146,000	$	1,137,000	$	4,009,000	$	5,143,000	$	1,022,000	$	4,121,000
Trademarks and trade names (1)		1,511,000		—		1,511,000		1,507,000		—		1,507,000
Trademarks and trade names (2)		200,000		9,000		191,000		200,000		5,000		195,000
Engineering drawings		330,000		154,000		176,000		330,000		148,000		182,000
Non-compete agreements (1)		214,000		167,000		47,000		212,000		150,000		62,000
Patents		1,205,000		732,000		473,000		1,205,000		666,000		539,000
Totals	$	8,606,000	$	2,199,000	$	6,407,000	$	8,597,000	$	1,991,000	$	6,606,000

(1)

A portion of these intangibles are maintained in a foreign currency, and are therefore subject to foreign exchange rate fluctuations.

(2)

These were previously considered an indefinite lived intangible asset of Hy-Tech, however as the result of the testing for impairment the Company began amortizing these intangible assets over a fifteen year useful life.

Amortization expense of intangible assets from continuing operations subject to amortization was as follows:

Three months ended March 31,
2017		2016
$	206,000	$	308,000

The weighted average amortization period for intangible assets was as follows:

	March 31, 2017		December 31, 2016
Customer relationships		9.1		9.3
Trademarks and trade names (2)		14.3		14.5
Engineering drawings		8.6		8.8
Non-compete agreements		1.0		1.2
Patents		6.5		6.1

Amortization expense for each of the next five years and thereafter is estimated to be as follows:

2018	$	648,000
2019		563,000
2020		544,000
2021		508,000
2022		508,000
Thereafter		2,125,000
	$	4,896,000

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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