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6 Months Ended

Jun. 30, 2019

Balance Sheet Related Disclosures [Abstract]

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Inventory

Inventories of $319,000 as of June 30, 2019 were comprised of work in process of $312,000 representing direct labor costs on in-process projects and finished goods of $7,000 net of reserves for obsolete and slow-moving items of $3,000.

Inventories of $29,000 as of December 31, 2018 were comprised of work in process of $21,000 representing direct labor costs on in-process projects and finished goods of $8,000 net of reserves for obsolete and slow-moving items of $3,000.

Intangible Assets

The carrying amounts of the Company’s patent intangible assets were $76,000 and $82,000 as of June 30, 2019 and December 31, 2018, respectively, which includes accumulated amortization of $583,000 and $577,000 as of June 30, 2019 and December 31, 2018, respectively. Amortization expense for patent intangible assets was $3,000 and $6,000 for the three and six months ended June 30, 2019 and 2018. Patent intangible assets are being amortized on a straight-line basis over their remaining life of approximately 7.00 years. There was no impairment of the Company’s intangible assets during the three and six months ended June 30, 2019 and 2018.

The estimated acquired intangible amortization expense for the next five fiscal years is as follows:

Fiscal Year Ended December 31,	Estimated Amortization Expense ($ in thousands)
2019 (six months)	$	6
2020		12
2021		12
2022		12
2023		12
Thereafter		22
Totals	$	76

Goodwill

The Company annually, or more frequently if events or circumstances indicate a need, tests the carrying amount of goodwill for impairment. The Company performs its annual impairment test in the fourth quarter of each year. In December 2018, the Company adopted the provisions of ASU 2017-04, “Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” The provisions of ASU 2017-04 eliminate the requirement to calculate the implied fair value of goodwill to measure a goodwill impairment charge. Instead, entities will record an impairment charge based on the excess of a reporting unit’s carrying amount over its fair value. Entities that have reporting units with zero or negative carrying amounts, will no longer be required to perform a qualitative assessment assuming they pass the simplified impairment test. The Company continues to have only one reporting unit, Identity Management, which at June 30, 2019, had a negative carrying amount of approximately $2,972,000. Based on the results of the Company’s impairment testing, the Company determined that its goodwill was not impaired as of June 30, 2019 and December 31, 2018.