Note 5 - Goodwill	12 Months Ended
Oct. 01, 2016
Notes to Financial Statements
Goodwill Disclosure [Text Block]	5 . GOODWILL As of October 1, 2016 and October 3, 2015, we had goodwill of $3,937,676 and $3,930,282, respectively. These amounts include goodwill from three reporting units, all of which are part of our medical segment. On December 9, 2011, we acquired, through Span Medical Products Canada Inc., our wholly - owned subsidiary, substantially all of the assets of M.C. Healthcare Products Inc. (“old M.C. Healthcare”). The carrying value of goodwill was increased by $7,394 for fiscal 2016 and reduced by $361,561 and $195,703 for fiscal 2015 and 2014, respectively, as a result of changes in the foreign currency exchange rate. Under Canadian tax law, a portion of goodwill acquired in connection with an asset acquisition may be amortized for tax purposes. We expect 75%, or approximately $2,000,000, of the goodwill associated with Span - Canada to be amortizable and deductible for tax purposes. For the fiscal year ended October 1, 2016, we tested each of our three reporting units for goodwill impairment in accordance with ASC 350 - 20 - 35 Intangibles – Goodwill and Other. We determined that the fair value of each of our reporting units was greater than its respective carrying value, and therefore no impairment charges were recognized in fiscal 2016. We calculate the estimated fair value of our reporting units by using an income approach, which includes internally developed discounted cash flow models. To determine fair value, we make assumptions about a number of internal and external factors. Significant assumptions used in the impairment analysis include financial projections of sales, expenses, profit margins, working capital requirements, capital expenditures, tax rates and discount rates. These assumptions are based on our historical operating results for each of our reporting units, our detailed operating plan for fiscal year 2017 and our financial forecasts for fiscal years 2018 through 2021. There is significant uncertainty about the various assumptions made in the analysis. Our estimates of cash flows may differ from actual cash flows due to, among other things, changes in our estimated sales and expense growth rates, other changes in our financial forecasting models, economic conditions in the U.S. and Canadian medical markets, Medicare reimbursement changes, government budget changes in the Canadian healthcare market and other risks referenced from time to time in our Securities and Exchange Commission filings. See Part 1, Item 1A. “Risk Factors” earlier in this report for more information on factors that could affect our assumptions used in the impairment analysis. These factors increase the risk of differences between projected and actual performance that could impact future estimates of the fair values of all reporting units. Significant differences between these estimates and actual cash flows could result in impairment charges in future periods.

GOODWILL

As of

October

2016

and

October

2015,

we had goodwill of

$3,937,676

and

$3,930,282,

respectively. These amounts include goodwill from

three

reporting units, all of which are part of our medical segment.

December

2011,

we acquired, through Span Medical Products Canada Inc., our wholly - owned subsidiary, substantially all of the assets of M.C. Healthcare Products Inc. (“old M.C. Healthcare”). The carrying value of goodwill was increased by

$7,394

for fiscal

2016

and reduced by

$361,561

and

$195,703

for fiscal

2015

and

2014,

respectively, as a result of changes in the foreign currency exchange rate.

Under Canadian tax law, a portion of goodwill acquired in connection with an asset acquisition

may

be amortized for tax purposes. We expect

75%,

or approximately

$2,000,000,

of the goodwill associated with Span - Canada to be amortizable and deductible for tax purposes.

For the fiscal year ended

October

2016,

we tested each of our

three

reporting units for goodwill impairment in accordance with ASC

350

Intangibles – Goodwill and Other. We determined that the fair value of each of our reporting units was greater than its respective carrying value, and therefore

impairment charges were recognized in fiscal

2016.

We calculate the estimated fair value of our reporting units by using an income approach, which includes internally developed discounted cash flow models. To determine fair value, we make assumptions about a number of internal and external factors. Significant assumptions used in the impairment analysis include financial projections of sales, expenses, profit margins, working capital requirements, capital expenditures, tax rates and discount rates. These assumptions are based on our historical operating results for each of our reporting units, our detailed operating plan for fiscal year

2017

and our financial forecasts for fiscal years

2018

through

2021.

There is significant uncertainty about the various assumptions made in the analysis. Our estimates of cash flows

may

differ from actual cash flows due to, among other things, changes in our estimated sales and expense growth rates, other changes in our financial forecasting models, economic conditions in the U.S. and Canadian medical markets, Medicare reimbursement changes, government budget changes in the Canadian healthcare market and other risks referenced from time to time in our Securities and Exchange Commission filings. See Part

Item

1A.

“Risk Factors” earlier in this report for more information on factors that could affect our assumptions used in the impairment analysis. These factors increase the risk of differences between projected and actual performance that could impact future estimates of the fair values of all reporting units. Significant differences between these estimates and actual cash flows could result in impairment charges in future periods.