Acquired Intangible Assets and Goodwill

3 Months Ended

Jan. 31, 2016

Acquired Intangible Assets and Goodwill [Abstract]

Note 10. Acquired Intangible Assets and Goodwill

The details of the Company's acquired intangible assets and goodwill, at the dates indicated, are as follows:

	January 31, 2016				October 31, 2015
	Gross				Gross
	Carrying		Accumulated		Carrying		Accumulated
	Amount		Amortization		Amount		Amortization
Amortizable intangible assets:
Non-compete agreement	$	1,000,000	$	1,000,000	$	1,000,000	$	1,000,000
Customer relationships		2,451,073		1,423,753		2,451,073		1,393,228
Other		564,946		564,946		564,946		564,946
		4,016,019		2,988,699		4,016,019		2,958,174

Unamortizable intangible assets:
Goodwill		1,737,763		507,278		1,737,763		507,278
		1,737,763		507,278		1,737,763		507,278

Total goodwill and other intangibles	$	5,753,782	$	3,495,977	$	5,753,782	$	3,465,452

Amortization expense for the three months ended January 31, 2016 and 2015 was $31,000. Customer relationships are being amortized over a period of 20 years, related to the acquisition of Syscan in 2004. The weighted average remaining life of the Company's amortizable intangible assets was approximately 4 years.

Estimated amortization expense for each of the following years is:

2016	$	91,573
2017		122,098
2018		122,098
2019		122,098
2020		122,098
Thereafter		447,355
	$	1,027,320

The changes in the carrying amount of goodwill and other amortizing intangibles for the three months ended January 31, 2016 were as follows:

Goodwill:

	Printing			Office Products and Furniture		Total

Balance at October 31, 2015
Goodwill	$	2,226,837		$	1,230,485	$	3,457,322
Accumulated impairment losses		(2,226,837	)		-		(2,226,837	)
		-			1,230,485		1,230,485

Goodwill acquired three months ended January 31, 2016		-			-		-
Impairment losses three months ended January 31, 2016		-			-		-

Balance at January 31, 2016
Goodwill		2,226,837			1,230,485		3,457,322
Accumulated impairment losses		(2,226,837	)		-		(2,226,837	)
	$	-		$	1,230,485	$	1,230,485

Amortizing Intangible Assets (net of amortization expense):

	Printing		Office Products and Furniture		Total

Balance at October 31, 2015:
Amortizing intangible assets	$	354,303	$	703,542	$	1,057,845
Accumulated impairment losses		-		-		-
		354,303		703,542		1,057,845

Amortizing intangible assets acquired three months ended January 31, 2016		-		-		-
Impairment losses three months ended January 31, 2016		-		-		-
Amortization expense		10,226		20,299		30,525

Balance at January 31, 2016:
Amortizing intangible assets		344,077		683,243		1,027,320
Accumulated impairment losses		-		-		-
	$	344,077	$	683,243	$	1,027,320

- 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