Goodwill and Other Intangible Assets, net

9 Months Ended

Sep. 30, 2014

Goodwill and Other Intangible Assets, net [Abstract]

Goodwill and Other Intangible Assets, net

Note 6

Goodwill and Other Intangible Assets, net:

As part of the purchase price allocation for the reverse acquisition in December 2011, the Company recorded goodwill in the amount of $24,005 and definite-lived intangibles in the amount of $12,000. As part of the provisional purchase price allocation for the LCA-Vision acquisition in May 2014, the Company recorded goodwill in the amount of $49,582, indefinite-lived intangibles in the amount of $29,850 and definite-lived intangibles in the amount of $9,200. Goodwill reflects the value or premium of the acquisition price in excess of the fair values assigned to specific tangible and intangible assets. The goodwill resulting from the acquisition of LCA-Vision was allocated to the activities of LCA-Vision, which was recognized as a new reportable segment (“Clinics”). Goodwill and the LCA-Vision trademark name have an indefinite useful life and therefore are not amortized as an expense, but are reviewed at least annually for impairment. The goodwill and other identifiable assets of LCA-Vision are subject to change based upon the final allocation of the purchase price. The purchase price intrinsically recognizes the benefits of leveraging under-utilized clinics by establishing XTRAC centers of excellence in key markets.

	Goodwill			Indefinite -lived Trademarks
Balance at January 1, 2014	$	24,930		$	-
Additions for LCA-Vision acquisition		49,582			29,850
Translation differences		(230	)		-
Balance at September 30, 2014	$	74,282		$	29,850

The Company has no impairment loss on goodwill or indefinite-lived assets as of September 30, 2014.

Set forth below is a detailed listing of other definite-lived intangible assets:

	September 30, 2014
	(unaudited)
	Trademarks			Customer Relationships			Managed Care Network			Total
Gross Amount beginning of period	$	5,772		$	6,417		$	-		$	12,189
Additions		-			-			9,200			9,200
Translation differences		(22	)		(33	)		-			(55	)
Gross Amount end of period		5,750			6,384			9,200			21,334

Accumulated amortization		(1,606	)		(1,782	)		(431	)		(3,819	)

Net Book Value	$	4,144		$	4,602		$	8,769		$	17,515

	December 31, 2013

	Trademarks			Customer Relationships			Managed Care Network		Total
Gross Amount beginning of period	$	5,744		$	6,372		$	-	$	12,116
Translation differences		28			45			-		73
Gross Amount end of period		5772			6,417			-		12,189

Accumulated amortization		(1,178	)		(1,310	)		-		(2,488	)

Net Book Value	$	4,594		$	5,107		$	-	$	9,701

Related amortization expense was $1,331 and $900 for the periods ended September30, 2014 and 2013, respectively. Customer Relationships embody the value to the Company of relationships that Pre-merged PhotoMedex had formed with its customers. Definite useful life trademarks include the tradenames and various trademarks associated with Pre-merged PhotoMedex products (e.g. “XTRAC”, “Neova” “Omnilux” and “Lumiere”). Additions to Trademarks include the tradename/trademark associated with LCA-Vision services. This tradename is considered to have an indefinite live. Managed Care Network relates to relationships with leading managed care providers (i.e. employee vision plans) that refers business to LCA-Vision. The Managed Care Network is to be amortized over a ten-year life.

Estimated amortization expense for the above amortizable intangible assets for the next five years is as follows:

Last three months of 2014	$	587
2015		2,350
2016		2,350
2017		2,350
2018		2,350
Thereafter		7,528
Total	$	17,515

- 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.

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