Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure [Text Block]

3. Goodwill and Intangible Assets

The changes in the carrying amount of goodwill as of December 31, 2018 and 2017 were as follows (in thousands):

Balance as of January 1, 2017	$	2,734
Foreign currency translation adjustment		98
Balance as of December 31, 2017		2,832
Foreign currency translation adjustment		(107	)
Goodwill impairment		(675	)
Balance as of December 31, 2018	$	2,050

The Company recorded a full goodwill impairment of $675,000 for its DDS segment as of June 30, 2018.

The Company periodically analyzes whether any indicators of impairment have occurred. As part of these periodic analyses, the Company compares its estimated fair value, as determined based on its stock price, to its net book value. The continued decline in the Company’s stock price was viewed by the Company as a triggering event under ASU 2017-04 which required an assessment for possible goodwill impairment as of June 30, 2018. Under the provisions of ASU 2017-04, which the Company opted to early adopt, goodwill impairment is recognized based on Step 1 of the current guidance, which calculates the carrying value in excess of the reporting unit’s fair value.

The Company performed this assessment as of June 30, 2018 and determined that the fair value of the Agility segment exceeded its carrying value, but the fair value of the DDS segment was below its carrying value. As a result, the Company recorded a full goodwill impairment of $675,000 for the DDS segment reporting unit as of June 30, 2018.

The Company performed its annual goodwill assessment for the Agility segment as of September 30, 2018 and reached the conclusion that there is no goodwill impairment because the Agility segment’s fair value exceeded its carrying value.

The fair value measurement of goodwill was classified within Level 3 of the fair value hierarchy because the income approach was used, which utilizes significant inputs that are unobservable in the market. The Company believes it made reasonable estimates and assumptions to calculate the fair value of the reporting unit as of the impairment test measurement date.

December 31, 2018	Level 1		Level 2		Level 3
Assets
Goodwill	$	-	$	-	$	2,050

December 31, 2017	Level 1		Level 2		Level 3
Assets
Goodwill	$	-	$	-	$	2,832

Information regarding our acquisition-related intangible assets is as follows (in thousands):

	Developed technology			Customer relationships			Trademarks and tradenames			Patents			Media Contact Database			Total
Gross carrying amounts:
Balance as of January 1, 2017	$	3,019		$	2,112		$	865		$	43		$	3,510		$	9,549
Foreign currency translation		185			152			19			3			137			496
Balance as of December 31, 2017		3,204			2,264			884			46			3,647			10,045
Foreign currency translation		(205	)		(183	)		(29	)		(4	)		(101	)		(522	)
Balance as of December 31, 2018	$	2,999		$	2,081		$	855		$	42		$	3,546		$	9,523

	Developed technology			Customer relationships			Trademarks and tradenames			Patents			Media Contact Database			Total
Accumulated amortization:
Balance as of January 1, 2017	$	545		$	425		$	203		$	10		$	175		$	1,358
Amortization expense		312			182			121			4			361			980
Foreign currency translation		45			38			6			1			11			101
Balance as of December 31, 2017		902			645			330			15			547			2,439
Amortization expense		317			185			122			5			367			996
Foreign currency translation		(82	)		(64	)		(12	)		(1	)		(28	)		(187	)
Balance as of December 31, 2018	$	1,137		$	766		$	440		$	19		$	886		$	3,248

Amortization expense relating to acquisition-related intangible assets was approximately $1.0 million for both years ended December 31, 2018 and 2017.

Estimated annual amortization expense for intangible assets subsequent to December 31, 2018 is as follows (in thousands):

Year	Amortization
2019	$	951
2020		886
2021		886
2022		886
2023		886
Thereafter		1,780
	$	6,275