Note 4 - Goodwill and Intangible Assets

9 Months Ended

Sep. 30, 2012

Goodwill and Intangible Assets Disclosure [Text Block]

(4)  GOODWILL AND INTANGIBLE ASSETS

Goodwill and intangible assets on our balance sheets are the result of our acquisitions of Sigma Systems Corp. ("Sigma") in October 2008 and Thermonics in January 2012. The acquisition of Thermonics is discussed further in Note 3.

Goodwill

All of our goodwill is allocated to our Thermal Products segment. Changes in the amount of the carrying value of goodwill for the nine months ended September 30, 2012 are as follows:

	Sigma		Thermonics		Total
Balance - January 1, 2012	$	1,656	$	-	$	1,656
Acquisition of Thermonics		-		50		50
Balance - September 30, 2012	$	1,656	$	50	$	1,706

Intangible Assets

The following table provides further detail about our intangible assets as of September 30, 2012 and December 31, 2011:

	Sept. 30, 2012
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Finite-lived intangible assets:
Customer relationships	$	1,480	$	377	$	1,103
Patented technology		590		212		378
Software		270		108		162
Trade name		140		25		115
Customer backlog		70		70		-
Non-compete/non-solicitation agreement		48		16		32
Total finite-lived intangible assets		2,598		808		1,790
Indefinite-lived intangible assets:
Sigma trademark		510		-		510
Total intangible assets	$	3,108	$	808	$	2,300

	December 31, 2011
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Finite-lived intangible assets:
Customer relationships	$	370	$	200	$	170
Patented technology		230		150		80
Software		270		88		182
Total finite-lived intangible assets		870		438		432
Indefinite-lived intangible assets:
Sigma trademark		510		-		510
Total intangible assets	$	1,380	$	438	$	942

We generally amortize our finite-lived intangible assets over their estimated useful lives on a straightline basis, unless an alternate amortization method can be reliably determined. Any such alternate amortization method would be based on the pattern in which the economic benefits of the intangible asset are expected to be consumed. None of our intangible assets have any residual value. The following table provides further information about the estimated useful lives of our finite-lived intangible assets as of September 30, 2012:

	Estimated Useful Life		Remaining Estimated Useful Life at Sept. 30, 2012
	- - - - (in months) - - - -
Finite-lived intangible assets resulting from the acquisition of Sigma:
Customer relationships		72		24
Software		120		72
Patented technology		60		12
Finite-lived intangible assets resulting from the acquisition of Thermonics:
Customer relationships		72		63.5
Customer backlog		3		-
Trade name		48		39.5
Patented technology		132		123.5
Non-compete/non-solicitation agreement		18		12

The following table sets forth changes in the amount of the carrying value of finite-lived intangible assets for the nine months ended September 30, 2012:

Balance - January 1, 2012	$	432
Acquisition of Thermonics		1,728
Amortization		(370	)
Balance - September 30, 2012	$	1,790

Total amortization expense for the nine months ended September 30, 2012 and 2011 was $370 and $101, respectively. Total estimated amortization expense for 2012 is $476. The following table sets forth the estimated annual amortization expense for our finite-lived intangible assets for each of the next five years:

2013	$	446
2014	$	355
2015	$	289
2016	$	229
2017	$	212