Note 8 - Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2016

Goodwill and Intangible Assets Disclosure [Text Block]

8—GOODWILL

AND INTANGIBLE ASSETS

As discussed in Note

11,

the Company adopted ASC

350,

‘‘Goodwill and Other Intangible Assets’’, on

January

2002.

ASC

350

requires that goodwill and other intangible assets that have indefinite lives not be amortized but instead be tested at least annually for impairment, or more frequently when events or change in circumstances indicate that the asset might be impaired, by comparing the carrying value to the fair value of the reporting unit to which they are assigned. The Company considers its ASC

280

operating segment — High Intensity Focused Ultrasound (HIFU) and Urology Devices and Services (UDS) — to be its reporting units for purposes of testing for impairment. Goodwill amounts to

€1,767

thousand for the UDS division and to

€645

thousand for the HIFU division, at

December

31,

2016.

The Company completed the required annual impairment test in the

fourth

quarter of

2016.

To determine the fair value of the Company’s reporting units, the Company used the discounted cash flow approach for each of the

two

reportable units. The main assumptions used are the following: (i) a

five

-year business plan approved by management, (ii) a discount rate of

15%

for HIFU,

10%

for UDS, (iii) a residual value specific to each segment. In both cases, the fair value of the reporting unit was in excess of the reporting unit's book value, which resulted in no goodwill impairment.

one

percentage point increase in the HIFU discount rate assumed in the impairment testing would not lead the Company to record an impairment charge. Similarly, a

one

percentage point increase in the UDS discount rate assumed in the impairment testing would not lead the Company to record an impairment charge. A

zero

growth rate in the Company’s UDS business plan would not lead the Company to record any impairment charge. A

10%

growth rate in the Company’s HIFU business plan would not lead the Company to record any impairment charge.

Intangible assets consist of the following:

	December 31,
	2016			2015
Licenses		613			462
Trade name and trademark		621			596
Patents		412			412
Organization costs		363			363
Total gross value		2,009			1,833
Less: accumulated amortization		(1,860	)		(1,794	)
Total		149			39

Amortization expenses related to intangible assets amounted to

€42

thousand,

€6

thousand and

€26

thousand, for the years ended

December

31,

2016,

2015

and

2014,

respectively.

For the

five

coming years, the annual estimated amortization expense will consist of the following:

	December 31,

2017		71
2018		38
2019		24
2020		3
2021		-
Total		136

- 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.

+ References + Details