Goodwill

12 Months Ended

Dec. 31, 2014

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill Disclosure

Note 6 - Goodwill

In June 2013, the Company finalized its purchase of substantially all the assets and certain liabilities of JDOG Marketing. The Company accounted for this transaction as a business combination and as a result recognized $2.1 million of goodwill. See Note 3 – Acquisitions for more information regarding this transaction. The Company used many estimates in the determination of the acquisition date fair value of JDOG Marketing. One of these estimates was related to future sales between GNR, the Company’s subsidiary purchasing JDOG Marketing in the business combination, and two of the Company’s Ohio natural gas utility subsidiaries, NEO and Orwell.

In November 2013, the PUCO released an Opinion and Order related to the 2012 NEO and Orwell GCR audits. This Opinion and Order, amongst other things, fined the Company’s NEO and Orwell subsidiaries for failure to terminate natural gas purchase agreements with JDOG Marketing. As a result of these fines, the Company has ceased all future purchases by NEO and Orwell of natural gas from GNR. The Company is unsure if GNR will be able to replace these lost sales volumes with sales to other sources. This change in forecast negatively affected the calculated enterprise value of GNR and led to the 2013 goodwill impairment charge included in the Company’s Marketing & Production segment. This impairment charge was calculated using both a Discounted Cash Flow method and a Guideline Public Company method.

The schedule below describes the changes in carrying amount of goodwill for the years ended December 31, 2014 and 2013:

			Marketing &
	Natural Gas		Production		Total
Balance as of December 31, 2012	$	14,891,377	$	-	$	14,891,377
Acquisition of JDOG Marketing		-		2,101,744		2,101,744
GNR impairment loss		-		(725,744)		(725,744)
Balance as of December 31, 2013	$	14,891,377	$	1,376,000	$	16,267,377
Classified as asset held for sale		(111,705)		-		(111,705)
Balance as of December 31, 2014	$	14,779,672	$	1,376,000	$	16,155,672

The following table shows the Company’s gross goodwill balance and accumulated impairment loss as of the balance sheet dates.

	December 31,
	2014		2013
Goodwill, gross
Natural Gas	$	14,779,672	$	14,891,377
Marketing & Production		2,101,744		2,101,744
Total goodwill, gross		16,881,416		16,993,121
Accumulated impairment loss
Natural Gas		-		-
Marketing & Production		(725,744)		(725,744)
Total accumulated impairment loss		(725,744)		(725,744)
Goodwill, net	$	16,155,672	$	16,267,377