Goodwill and Intangibles

9 Months Ended

Dec. 31, 2012

Goodwill and Intangible Assets Disclosure [Abstract]

Intangible Assets Disclosure [Text Block]

Goodwill and Intangibles

We assess the recoverability of the carrying value of the identifiable intangible assets with finite useful lives whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable.  During the quarterly period ended December 31, 2012, certain events and circumstances triggered the need for an impairment valuation of our amortizable intangible assets.

As a result of the material decline in revenues caused by the significant reduction in cases referred to us and its negative impact on our operating results under our new contract with the NYCDOE, we performed an impairment analysis on our intangible assets. The evaluation resulted in an impairment of our intangible assets. Accordingly, during the quarter ended December 31, 2012, we recorded an impairment charge totaling $38,346.

The following table presents certain information regarding our intangible assets at December 31, 2012:

	Estimated	Carrying		Accumulated
	Useful Lives	Value		Amortization			Net
Customer contracts	15 years	$	68,700	$	(19,656	)	$	49,044

Intangible assets are being amortized on a straight-line basis over their estimated useful lives. For the three and nine months ended December 31, 2012, amortization expense was $1,738 and $5,804, respectively. Assuming no changes in our intangible assets, estimated amortization expense for the remainder of the current fiscal year ending March 31, 2013 will be $1,145 and will be $4,580 in each of the four succeeding fiscal years.

We considered the impairment indicators previously discussed, as well as the impairment recorded on our intangible assets, and concluded that we needed to test recorded goodwill. The analysis indicated an impairment representing the entire goodwill balance. Accordingly, we recorded an impairment charge of $75,000 during the current quarter ended December 31, 2012.