Intangible Assets

9 Months Ended

Nov. 30, 2015

Intangible Assets

Note 6. – Intangible Assets

Intangible assets consist of customer lists for legacy products for airlines. The Company evaluated the asset for impairment and has determined it appropriate to record an impairment charge equal to the remaining value of this intangible asset this quarter due to declining sales associated with this asset. The sales to these customers have been declining, only 46% to budget for the first nine months this fiscal year. The amount of the impairment is $471 thousand. Amortization expense related to intangible assets before the impairment charge to operations was approximately $88 thousand for the nine months ended November 30, 2015 and $94 thousand for the nine months ended November 30, 2014, respectively.

The cost and accumulated amortization of intangible assets was as follows (in thousands).

	November 30, 2015				February 28, 2015
	Cost		Accumulated Amortization		Cost		Accumulated Amortization
Customer lists	$	2,863	$	2,863	$	2,863	$	2,304
	$	2,863	$	2,863	$	2,863	$	2,304