Annual report pursuant to Section 13 and 15(d)
|12 Months Ended|
Dec. 31, 2016
|Asset Impairment Charges [Abstract]|
Note P – Asset Impairment
During the fourth quarter of 2016, as part of our annual impairment assessment, it was determined that the carrying amount of certain intangible assets exceeded fair value and were impaired.
The following table reconciles the asset impairment charges which are recognized in operating expenses in our consolidated statement of operations:
This impairment charge is related to the Master License Agreement with Health Discovery Corporation. This impairment charge writes off the HDC intangible assets associated with SVM, LDT, flow cytometry and cytogenetics technologies. The impairment is primarily the result of the lack of revenues to date, and the disputed license termination notification received from HDC. As a result of the disputed license termination notice, the likelihood of future revenues as result of direct use of the HDC assets is significantly reduced. Based on this analysis, the Company determined that the assets were fully impaired, and an impairment loss was recorded for the unamortized balance of these assets in the amount of $1.9 million.
Path Logic Assets
This impairment charge is associated with our Path Logic intangible assets, consisting of customer relationships. Based on the analysis performed, this asset is fully impaired.
The entire disclosure for the details of the charge against earnings resulting from the aggregate write down of all assets from their carrying value to their fair value. Disclosure may also include a description of the impaired asset and facts and circumstances leading to the impairment, amount of the impairment loss and where the loss is located in the income statement, method(s) for determining fair value, and the segment in which the impaired asset is reported.
No definition available.