7.	INTANGIBLE ASSETS AND GOODWILL

Amortizable intangible assets consisted of the following:

	Year Ended March 31,
	2018			2017

Tradenames	$	442,000		$	442,000
Customer relationships		751,000			751,000
Non-compete		69,700			69,700
Certification		47,000			47,000
License		250,000			-
Patents		1,090,000			1,090,000
Software		429,128			420,360
Other		22,242			22,242
		3,101,070			2,842,302
Less accumulated amortization and impairment		(1,788,598	)		(1,465,603	)
Intangible assets, net	$	1,312,472		$	1,376,699

Amortization expense was approximately

$323,000

for the fiscal year

2018

compared to

$105,000

for the prior fiscal year. Most of the net book value of the Company’s amortizable intangibles stems from the Company’s acquisitions of Contrail Aviation, D&D and Jet Yard (see Note

). The Company’s consolidated statement of income (loss) for the year ended

March 31, 2017

reflects a tradename and patent impairment charge in the amount of

$1,110,000.

These impairment charges in the prior year were incurred by Delphax (see Note

Annual future amortization expense for these intangible assets for the

five

succeeding years is as follows:

Year ending March 31,
2019	$	351,715
2020		214,129
2021		152,568
2022		125,573
2023		115,578
Thereafter		352,909
	$	1,312,472

Goodwill consisted of the following:

	Year Ended March 31,
	2018			2017

Goodwill, at original cost	$	4,793,013		$	4,793,013

Less accumulated impairment		(375,408	)		(375,408	)
Goodwill, net of impairment	$	4,417,605		$	4,417,605

The Company recorded goodwill of approximately

$375,000

in connection with its investment in Delphax (Note

). The Company estimated an impairment of

$275,000

in connection with its investment in Delphax during the quarter ended

June 30, 2016

which reduced the goodwill balance to

(there was an impairment of

$100,000

recorded during the year ended

March 31, 2016).

Certain business acquisitions have resulted in the recording of goodwill, which is

not

amortized. As of

March 31, 2018,

the Company had approximately

$4.4

million of goodwill,

$4.2

million of which is related to the acquisition of Contrail Aviation Support, Inc. (“Contrail”). We performed our annual impairment assessment for goodwill of the Contrail reporting unit. In conducting a quantitative assessment, the Company analyzes a variety of events or factors that

may

influence the fair value of the Contrail reporting unit including, but

not

limited to: changes in the carrying amount of the reporting unit; actual and projected revenue and operating margin; relevant market data for both the Company and its peer companies; industry outlooks; macroeconomic conditions; liquidity; changes in key personnel; and the Company's competitive position. Significant judgment is used to evaluate the totality of these events and factors to make the determination of whether it is more likely than

not

that the fair value of the reporting unit is less than its carrying value.

2018,

the Company elected to bypass the qualitative assessment and perform a quantitative analysis using an income approach and market approaches, to evaluate goodwill. The discounted cash flow method under (income approach) uses the reporting unit's projections of estimated operating results and cash flows that are discounted using a market participant discount rate based on a weighted-average cost of capital. The financial projections reflect management's best estimate of economic and market conditions over the projected period including forecasted revenue growth, operating margins, tax rate, capital expenditures, depreciation and amortization and changes in working capital requirements. Other assumptions include discount rate and terminal growth rate. The estimated fair value of the reporting unit is compared to their respective carrying values. A market approach estimates fair value by applying guideline company market multiples to the reporting unit's applicable financial metrics. The multiples are derived from comparable publicly traded and transacted/acquired companies with similar operating and investment characteristics of the reporting units.

Based on the results of our annual quantitative assessment conducted as of

March 31, 2018,

the fair value of our Contrail reporting unit exceeded its carrying value by approximately

38%,

and management concluded that

impairment charge was warranted.