Note 5: Impairment

12 Months Ended

Dec. 31, 2014

Notes

Note 5: Impairment

Note 5:  Impairment          

In 2014, our Board of Directors determined that it is in the best interest of Perseon shareholders to divest of our assets related to the hyperthermia product line    In connection with our plans to either sell or divest the assets related to the hyperthermia product line, we analyzed the carrying value and estimated net realizable value of inventory and other assets related to the hyperthermia product line as of December 31, 2014.  As a result of this analysis, during the four months ended December 31, 2014, we recorded an impairment charge of $805,000 for inventory, equipment, and other assets related to the hyperthermia product line.  These impairment expenses are the result of our assessment of the decrease in the estimated realizable value associated with assets related to the hyperthermia product line.  The inventory reserve was also increased by $50,000 in the corresponding year ended August 31, 2014, to recognize a portion of the devaluation of inventory related to the hyperthermia product line.