NOTE 5: LONG-LIVED ASSETS

Intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable and an impairment loss is recognized when it is probable that the estimated cash flows are less than the carrying amount of the asset.

During the three months ended December 31, 2014, as a result of an interim impairment test of goodwill and long-lived assets (see Note 4), the Company recorded an impairment charge of $4.9 million for the intellectual property acquired from Panopticon and $5.4 million for the customer lists acquired from Panopticon. There were no impairment charges recognized for the three and nine months ended June 30, 2016.

Acquired Intellectual Property

Acquired intellectual property consists of software source code acquired through business combinations in prior years. The acquired intellectual property assets are being amortized to cost of software licenses using the straight-line method over the estimated life of the asset, ranging from five to seven and a half years.

Acquired intellectual property, net, were comprised of the following at June 30, 2016 and September 30, 2015 (in thousands):


June 30, 2016
Identified	Weighted		Gross
Intangible	Average		Carrying				Accumulated		Net Carrying
Asset	Useful Life		Amount		Impairment		Amortization		Amount
	(In years)

Panopticon intellectual property	7.5	$	7,900	$	(4,895)	$	(1,794)	$	1,211
Monarch intellectual property	5		8,616		-		(7,333)		1,283

Total		$	16,516	$	(4,895)	$	(9,127)	$	2,494


September 30, 2015
Identified	Weighted		Gross
Intangible	Average		Carrying				Accumulated		Net Carrying
Asset	Useful Life		Amount		Impairment		Amortization		Amount
	(In years)

Panopticon intellectual property	7.5	$	7,900	$	(4,895)	$	(1,599)	$	1,406
Monarch intellectual property	5		8,616		-		(6,041)		2,575

Total		$	16,516	$	(4,895)	$	(7,640)	$	3,981

Other Intangible Assets

Other intangible assets consist of trade names, patents and customer lists acquired through business combinations in prior years. The values allocated to these intangible assets are amortized using the straight-line method over the estimated useful life of the related asset.

Other intangible assets, net, were comprised of the following at June 30, 2016 and September 30, 2015 (in thousands):


June 30, 2016
Identified	Weighted		Gross
Intangible	Average		Carrying				Accumulated		Net Carrying
Asset	Useful Life		Amount		Impairment		Amortization		Amount
	(In years)

Patents	20	$	160	$	-	$	(94)	$	66
Customer lists	14		8,990		(5,416)		(2,556)		1,018
Trade names	3		120		-		(120)		-

Total		$	9,270	$	(5,416)	$	(2,770)	$	1,084


September 30, 2015
Identified	Weighted		Gross
Intangible	Average		Carrying				Accumulated		Net Carrying
Asset	Useful Life		Amount		Impairment		Amortization		Amount
	(In years)

Patents	20	$	160	$	-	$	(88)	$	72
Customer lists	14		8,990		(5,416)		(2,396)		1,178
Trade names	3		120		-		(100)		20

Total		$	9,270	$	(5,416)	$	(2,584)	$	1,270