Goodwill and Intangible Assets

12 Months Ended

Jan. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

The goodwill activity is summarized as follows:



	Goodwill
Balance January 31, 2014	$	11,934,000
Goodwill acquired during fiscal 2014	4,251,000
Balance January 31, 2015 and January 31, 2016	$	16,185,000

Intangible assets, net, consist of the following:



	January 31, 2016
	Estimated Useful Life	Gross Assets		Accumulated Amortization		Net Assets
Definite-lived assets:
Trade name	1 year	$	26,000	$	26,000	$	—
Client relationships	10-15 years	5,932,000		2,220,000		3,712,000
Covenants not to compete	0.5-15 years	856,000		667,000		189,000
Supplier agreements	5 years	1,582,000		1,094,000		488,000
License agreement	15 years	4,431,000		665,000		3,766,000
Total		$	12,827,000	$	4,672,000	$	8,155,000



	January 31, 2015
	Estimated Useful Life	Gross Assets		Accumulated Amortization		Net Assets
Definite-lived assets:
Trade name	1 year	$	26,000	$	26,000	$	—
Client relationships	10-15 years	5,932,000		1,548,000		4,384,000
Covenants not to compete	0.5-15 years	856,000		606,000		250,000
Supplier agreements	5 years	1,582,000		778,000		804,000
License agreement	15 years	4,431,000		369,000		4,062,000
Total		$	12,827,000	$	3,327,000	$	9,500,000

In fiscal 2014, management determined that the concerted effort to rebrand the Company’s solutions under a single, harmonized Looking Glass® marketing platform moving forward, eroded, in total, the value of the Meta Trade name. As a result, the Company recorded a $1,952,000 loss, which is reflected in Impairment of intangible assets on the Consolidated Statements of Operations.

Amortization over the next five fiscal years for intangible assets is estimated as follows:



	Annual Amortization Expense
2016	$	1,298,000
2017	1,088,000
2018	863,000
2019	826,000
2020	791,000
Thereafter	3,289,000
Total	$	8,155,000

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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