Annual report pursuant to Section 13 and 15(d)

Note 5 - Intangible Assets

v3.8.0.1
Note 5 - Intangible Assets
12 Months Ended
Dec. 31, 2017
Notes to Financial Statements  
Intangible Assets Disclosure [Text Block]
5
.           
Intangible Assets
 
The carrying amount and accumulated amortization of intangible assets as of
December 31
are as follows (in thousands):
 
   
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
 
 
 
 
   
2016
 
   
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
     
19,427
     
17,107
 
Non-compete agreements
   
1,136
     
1,064
     
72
 
Software
   
13,745
     
1,685
     
12,060
 
                         
Total nonamortizable and amortizable intangible assets
  $
53,438
    $
22,199
    $
31,239
 
 
The weighted average remaining lives of
physician and customer relationships, non-compete agreements and software are
4
-years,
1
-year and
2
-years, respectively, as of
December 31, 2017.
 
The Company performed an impairment analysis in
December 2017
related to our internally developed, internal-use software, specifically looking at the effectiveness and useful lives of each project and sub-project. It was determined that certain projects and sub-projects were
no
longer viable and did
not
provide any further service potential. This resulted in an impairment of approximately
$1.0
million in
2017.
 
Amortization expense for intangible assets for the years ended
December 31,
201
7
and
2016
was
$5.6
million and
$3.8
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, 2017
are as follows (in thousands):
 
   
2018
   
2019
   
2020
   
2021
   
2022
   
2023 and
thereafter
 
Amortization expense
  $
4,649
    $
4,402
    $
4,285
    $
3,930
    $
2,051
    $
3,197