Note 6- Business Combination

12 Months Ended

Feb. 03, 2018

Notes to Financial Statements

Business Combination Disclosure [Text Block]

6.

            Business combination

In fiscal

2016,

we completed the acquisition of Bretelon, Inc. for a purchase consideration of

$19.4

million. Bretelon was incorporated into our Mobile IoT business unit. We recorded approximately

$11.1

million in goodwill,

$12.6

million in intangibles and assumed

$4.3

million in net liabilities. In fiscal

2017,

we recorded a

$0.5

million decrease in goodwill as part of the purchase price allocation adjustment.

We evaluate goodwill on an annual basis as of the last day of our fiscal year and whenever events or changes in circumstances indicate the carrying value

may

not

be recoverable.  Our announcement of a liquidation qualifies as a change in circumstances.  Accordingly, the Company retained the services of a

third

-party valuation specialist to appraise the Mobile IoT business unit including the carrying value of the goodwill and intangible assets resulting from the Bretelon acquisition.

As of

January 28, 2017,

our carrying value for goodwill related to Mobile IoT was

$10.6

million. For fiscal

2018

and as a result of the

third

-party valuation analysis, we determined this goodwill was unrecoverable. We recognized an impairment charge of

$10.6

million. Additionally, as discussed in Footnote

11

 - Impairments, we impaired other assets related to our Mobile IoT business unit.