Goodwill And Other Intangible Assets

6 Months Ended

Oct. 31, 2015

Goodwill And Other Intangible Assets [Abstract]

Note E - Goodwill and Other Intangible Assets

Goodwill

There were no changes in the carrying amount of tax-deductible goodwill in the amount of $3,222,899 for the three and six months ended October 31, 2015 and 2014, respectively.

Other Intangible Assets

Intangible assets subject to amortization are summarized as of October 31, 2015 as follows:



	Weighted Average
	Remaining	Gross
	Amortization	Carrying		Accumulated
	Period (Years)	Amount		Amortization

Other intangible assets – Able	-	$	375,000	$	375,000
Customer relationships – Able	-		2,395,000		2,395,000
Spitfire:
Non-contractual customer relationships	11.6		4,690,000		714,580
Backlog	-		22,000		22,000
Trade names	16.6		980,000		167,403
Non-compete agreements	3.6		50,000		24,395
Patents	1.6		400,000		273,347
Total		$	8,912,000	$	3,971,725

Note E - Goodwill and Other Intangible Assets - Continued

Intangible assets subject to amortization are summarized as of April 30, 2015, as follows:



	Weighted Average
	Remaining	Gross
	Amortization	Carrying		Accumulated
	Period (Years)	Amount		Amortization

Other intangible assets – Able	-	$	375,000	$	375,000
Customer relationships – Able	-		2,395,000		2,395,000
Spitfire:
Non-contractual customer relationships	12.08		4,690,000		548,781
Backlog	-		22,000		22,000
Trade names	17.08		980,000		142,905
Non-compete agreements	4.08		50,000		20,825
Patents	2.08		400,000		233,345
Total		$	8,912,000	$	3,737,856

Estimated aggregate amortization expense for intangible assets, which become fully amortized in 2032, for the remaining periods is as follows:



For the remaining 6 months of the fiscal year ending April 30:	2016	$	237,030
For the fiscal year ending April 30:	2017		490,010
	2018		435,043
	2019		423,721
	2020		411,406
	Thereafter		2,943,065
		$	4,940,275

Amortization expense was $118,515 and $109,032 for the three months ended October 31, 2015 and 2014, respectively. Amortization expense was $233,869 and $210,546 for the six month periods ended October 31, 2015 and 2014, respectively.

Note E - Goodwill and Other Intangible Assets - Continued

In conjunction with the May 2012 acquisition of Spitfire, the estimate of the fair value of the contingent consideration, $2,320,000, was based on expected operating results through fiscal 2019 and the specific terms of when such consideration would be earned. Those terms provide for additional consideration to be paid based on a percentage of sales and pre-tax profits over those years in excess of certain minimums. Payments are made quarterly each year and adjusted after each year-end audit. The Company made one payment in the quarter ended October 31, 2015 in the amount of $102,662. The Company made one payment in the quarter ended July 31, 2015 in the amount of $38,914. The Company made four quarterly payments of $65,000 each in fiscal 2015 and 2014, respectively, and made three quarterly payments of $65,000 each in fiscal 2013. As of October 31, 2015, the Company had not materially changed its estimated aggregate consideration expected to be earned under this arrangement. Any change in the Company’s estimate are reflected as a change in the contingent consideration liability and as additional charges or credits to selling and administrative expenses. As of October 31, 2015, the contingent consideration liability was $1,357,408.

- 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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