INTANGIBLE ASSETS

3 Months Ended

Mar. 31, 2017

Intangible Assets Net Excluding Goodwill [Abstract]

3.	INTANGIBLE ASSETS

On December 17, 2015, the Company acquired the South Beach Diet (“SBD”) brand for a cash payment of $15,000. The acquisition was financed with existing cash.

The Company developed the South Beach Diet® meal programs, products, and services in 2016 and launched a structured meal delivery weight-loss program as a distinct brand in 2017. The acquisition provides consumers with additional choices and enables the Company the ability to capture an even greater share of the commercial weight loss market as it further leverages its expertise in product development, marketing, ecommerce, supply chain logistics and retail.

The allocation of the purchase price was to the SBD trade name and is being amortized on a straight-line basis over a period of 15 years. The fair value measurement method used to measure the assets acquired utilized a number of significant unobservable inputs or Level 3 assumptions. These assumptions included, among others, projections of the acquired businesses future operating results, the implied fair value of assets using an income approach by preparing a discounted cash flow analysis and other subjective assumptions.

The following table summarizes the Company’s identifiable intangible assets:

	March 31, 2017							December 31, 2016
	Gross					Net		Gross					Net
	Carrying		Accumulated			Carrying		Carrying		Accumulated			Carrying
	Amount		Amortization			Amount		Amount		Amortization			Amount
Trade name	$	15,000	$	(1,250	)	$	13,750	$	15,000	$	(1,000	)	$	14,000

Amortization expense for intangible assets was $250 for each of the three months ended March 31, 2017 and 2016. Estimated amortization expense for the next five years is expected to be as follows:

Remaining 2017	$	750
2018		1,000
2019		1,000
2020		1,000
2021		1,000

Additionally, the Company has $84 of domain names acquired in previous years with indefinite lives that are not being amortized.