Note 2 - Supplemental Balance-sheet Information

3 Months Ended

Mar. 31, 2018

Notes to Financial Statements

Supplemental Balance Sheet Disclosures [Text Block]

Note

2

– Supplemental Balance Sheet Information

Receivables

Contract and other receivables consisted of the following (in

‘000’s

):

	March 31 , 2018			December 31, 2017
Contract and other receivables	$	1,983		$	998
Allowance for doubtful accounts		(8	)		(8	)
Contracts and other receivables, net	$	1,975		$	990

Inventor

ies

We state inventories at the lower of cost or net realizable value, using the

first

-in-

first

-out-method (in

‘000’s

) as follows:

	March 31 , 2018			December 31, 2017
Raw materials	$	96		$	136
less: Reserve		(2	)		(2	)
Inventories, net	$	94		$	134

Goodwill and Intangible Assets

Goodwill and Intangible Assets consisted of the following (in

‘000’s

):    

	March 31 , 201 8					December 31, 201 7
	Gross					Gross
	Carrying		Accumulated			Carrying		Accumulated
	Amount		Amortization			Amount		Amortization
Intangible assets not subject to amortization:
Goodwill	$	1,907		-		$	1,907		-
Intangible assets subject to amortization:
Customer relationships	$	906	$	(440	)	$	906	$	(418	)
Acquired software	$	234	$	(228	)	$	234	$	(216	)
Trade name	$	60		(7	)	$	60		(5	)

We recognized amortization expense related to intangibles of approximately

$36,000

for each if the

three

-month periods ended

March 31, 2018

and

2017,

respectively.

We have elected to use

December 31

as our annual date to test goodwill and intangibles for impairment. As circumstances change that could affect the recoverability of the carrying amount of the assets during an interim period, we will evaluate our indefinite lived intangible assets for impairment. We performed a quantitative analysis of our goodwill and intangibles at

December 31, 2017

as part of our annual testing for impairment and concluded that there was

no

impairment. Although there were events and circumstances in existence at

December 31, 2017

that suggest substantial doubt about our ability to continue as a going concern, the valuation results indicated that the fair value of our reporting units was greater than the carrying value, including goodwill, for each of our reporting units. Thus, we concluded that there was

no

impairment at

December 31, 2017

for our goodwill and other long-lived intangible assets. There were

no

identified triggering events or circumstances that occurred during the

three

-month period ended

March 31, 2018

that would have required an interim impairment analysis of our goodwill and other long-lived intangible assets.

Property and Equipment

Property and equipment consisted of the following (in

$’000

):

	Estimated Useful			March 31 ,			December 31 ,
	Lives (in years)			201 8			201 7
Vehicles		5		$	32		$	32
Trade equipment		5			162			162
Leasehold improvements	2	–	5		378			378
Furniture and fixtures		7			20			18
Computer equipment and software		3			1,483			1,448
					2,075			2,038
Less accumulated depreciation					(1,690	)		(1,620	)
Property and equipment, net				$	385		$	418

Depreciation of property and equipment and amortization of leasehold improvements and software totaled

$70,000

and

$125,000

the

three

-month periods ended

March 31, 2018

and

2017.

Accounts Payable and Accrued Expenses

Accounts payable and accrued expenses consisted of the following (in

$’000

):

	March 31 , 2018		December 31, 2017
Accounts payable	$	1,633	$	1,413
Accrued expenses		661		847
Compensation, benefits & related taxes		340		567
Other accrued expenses		13		14
Total accounts payable and accrued expenses	$	2,647	$	2,841