Annual report pursuant to Section 13 and 15(d)

Note 6 - Intangible Assets

v3.19.1
Note 6 - Intangible Assets
12 Months Ended
Dec. 31, 2018
Notes to Financial Statements  
Intangible Assets Disclosure [Text Block]
6
.
Intangible Assets
 
The carrying amount and accumulated amortization of intangible assets as of
December 31, 2018
and
2017
were as follows (in thousands):
 
   
2018
 
   
Gross Assets
   
Accumulated
Amortization
   
Net
 
Nonamortizable intangible assets
                       
Trade names
  $
2,000
    $
-
    $
2,000
 
Amortizable intangible assets
                       
Trade names
   
23
     
(23
)    
-
 
Physician and customer relationships
   
36,534
     
(24,175
)    
12,359
 
Non-compete agreements
   
1,136
     
(1,136
)    
-
 
Software
   
11,230
     
(5,724
)    
5,506
 
                         
Total nonamortizable and amortizable intangible assets
  $
50,923
    $
(31,058
)   $
19,865
 
 
   
2017
 
   
Gross Assets
   
Accumulated
Amortization
   
Net
 
Nonamortizable intangible assets
                       
Trade names
  $
2,000
    $
-
    $
2,000
 
Amortizable intangible assets
                       
Trade names
   
23
     
(23
)    
-
 
Physician and customer relationships
   
36,534
     
(21,801
)    
14,733
 
Non-compete agreements
   
1,136
     
(1,125
)    
11
 
Software
   
11,230
     
(3,460
)    
7,770
 
                         
Total nonamortizable and amortizable intangible assets
  $
50,923
    $
(26,409
)   $
24,514
 
 
The weighted average remaining lives of physician and customer relationships, non-compete agreements and software were
4
-years,
0
-years and
2
-years, respectively, as of
December 31, 2018.
 
In
2017,
the Company assessed the impairment indicators related to its internally-developed, internal-use software, specifically looking at the effectiveness and useful lives of each project and sub-project and concluded that impairment indicators were present. In
December 2017,
the Company performed an impairment analysis which resulted in an impairment of approximately
$1.0
million in
2017.
In
2018,
the Company re-assessed the impairment indicators and found
none
to be present.
 
Amortization expense for intangible assets for the years ended
December 31, 2018
and
2017
was
$4.6
million and
$5.6
million, respectively, which was recorded in operating expenses. Expected annual amortization expense for the next
five
years for intangible assets recorded as of
December 31, 2018
is as follows (in thousands):
 
   
2019
   
2020
   
2021
   
2022
   
2023
   
2024 and
thereafter
 
Amortization expense
  $
4,402
    $
4,285
    $
3,930
    $
2,051
    $
548
    $
2,649