XML 46 R12.htm IDEA: XBRL DOCUMENT v3.2.0.727
Note 7 - Goodwill
6 Months Ended
Jun. 30, 2015
Notes to Financial Statements  
Goodwill Disclosure [Text Block]
7.     Goodwill
 
The Company’s goodwill as of June 30, 2015 was $12,055,991. Goodwill is the excess of the cost of an acquired entity over the net amounts assigned to tangible and intangible assets acquired and liabilities assumed. The Company applies ASC 350 “
Goodwill and Other Intangible Assets
,” which requires testing goodwill for impairment on an annual basis. The Company assesses goodwill for impairment as part of its annual reporting process in the fourth quarter. In between valuations, the Company conducts additional tests if circumstances indicate a need for testing.
 
An annual impairment review was most recently completed on December 31, 2014. As of the December 31, 2014 impairment review, there was no impairment loss associated with recorded goodwill as the estimated fair value exceeded the carrying amount. The fair value of the reporting unit as of December 31, 2014, for the purpose of assessing the impairment of goodwill, was determined based on a primary analysis method, which provided a market capitalization of $66.1 million as of December 31, 2014. The Company determined that the fair value of its businesses for accounting purposes was equal to its market capitalization of approximately $66.1 million, which the Company then compared to its stockholders’ equity of $38.2 million, noting that fair value exceeded the carrying value, and therefore, indicated no impairment of goodwill.
 
The Company considers certain triggering events when evaluating whether an interim impairment analysis is warranted. Among these would be a significant long-term decrease in the market capitalization of the Company based on events specific to the Company’s operations. Although the Company’s market capitalization has decreased significantly during the past several months, as of June 30, 2015, the Company’s market capitalization approximated its stockholders’ equity of $31.8 million. Management concluded that given the short time period of the noted decrease, the inactive trading activity in the Company’s stock and the lack of a specific event triggering the decrease, there has not been a sustained decrease in the Company’s share price; and therefore, no triggering event has occurred during the first six months of 2015. If the Company’s recent stock price decline continues or if the Company’s market capitalization does not increase, it is possible that the Company’s goodwill might experience an impairment at the next annual impairment review anticipated during fourth quarter of 2015 or earlier if management determines that a triggering event has occurred.