Goodwill and Intangible Assets

9 Months Ended

Sep. 30, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

4. Goodwill and Intangible assets

In the fourth quarter of 2013, the Company recorded goodwill related to the acquisition of Familiar, Inc. (“Familiar”), which was calculated as the excess of the purchase price over the fair value of the identifiable tangible and intangible assets. The balance of goodwill at both September 30, 2014 and December 31, 2013 was $2.2 million.

Other intangible assets consisted of the following at September 30, 2014 and December 31, 2013 (in thousands):


		September 30, 2014							December 31, 2013
	Useful Life	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount
Amortized:
Domain names	5 Years	$	125	$	(111	)	$	14	$	125	$	(102	)	$	23
Issued patents	4 to 15 Years		1,735		(524	)		1,211		1,529		(441	)		1,088
Issued trademarks	9 to 11 Years		558		(191	)		367		437		(147	)		290

Total amortized			2,418		(826	)		1,592		2,091		(690	)		1,401

Not amortized:
TASER trademark			900					900		900					900
Patents and trademarks pending			615					615		1,016					1,016

Total not amortized			1,515					1,515		1,916					1,916

Total intangible assets		$	3,933	$	(826	)	$	3,107	$	4,007	$	(690	)	$	3,317

Amortization expense relative to intangible assets for the three months ended September 30, 2014 and 2013 was approximately $71,000 and $39,000, respectively. Amortization expense relative to intangible assets for the nine months ended September 30, 2014 and 2013 was approximately $153,000 and $115,000, respectively. Estimated amortization expense of intangible assets for the remaining three months of 2014, the next five years ended December 31, and thereafter is as follows (in thousands):


2014 (remaining three months)	$	46
2015		178
2016		171
2017		167
2018		157
2019		147
Thereafter		726

Total	$	1,592

- 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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