Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Impairment

v3.8.0.1
Impairment
12 Months Ended
Dec. 31, 2017
Asset Impairment Charges [Abstract]  
Impairment

Note P – 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 (in thousands), which are recognized in operating expenses in our consolidated statement of operations:

 

 

For the Years Ended December 31,

 

 

 

2017

 

 

2016

 

 

2015

 

Impairment of HDC Assets

 

$

-

 

 

$

1,902

 

 

$

-

 

Impairment of Path Logic Assets

 

 

-

 

 

 

1,562

 

 

 

-

 

Total Impairment

 

$

-

 

 

$

3,464

 

 

$

-

 

 

HDC Assets

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.  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.