Goodwill And Other Intangible Assets

6 Months Ended

Oct. 31, 2017

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, 2017 and 2016, respectively.

Other Intangible Assets

Intangible assets subject to amortization are summarized as of October 31, 2017 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	9.58		4,690,000		1,422,770
Backlog	-		22,000		22,000
Trade names	14.58		980,000		265,395
Non-compete agreements	1.58		50,000		38,675
Patents	-		400,000		400,000
Total		$	8,912,000	$	4,918,840

Note E - Goodwill and Other Intangible Assets - Continued

Intangible assets subject to amortization are summarized as of April 30, 2017, 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	10.08		4,690,000		1,237,410
Backlog	-		22,000		22,000
Trade names	15.08		980,000		240,897
Non-compete agreements	2.08		50,000		35,105
Patents	0.08		400,000		393,353
Total		$	8,912,000	$	4,698,765

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



For the remaining 6 months of the fiscal year ending April 30:	2018	$	214,968
For the fiscal years ending April 30:	2019		423,721
	2020		411,406
	2021		403,199
	2022		395,578
	Thereafter		2,144,288
		$	3,993,160

Amortization expense was $107,484 and $122,865 for the three months ended October 31, 2017 and 2016, respectively. Amortization expense was $220,075 and $244,280 for the six months ended October 31, 2017 and 2016, respectively.

Note E - Goodwill and Other Intangible Assets - Continued

In conjunction with the May 2012 acquisition of Spitfire, an estimate of the fair value of the contingent consideration, $2,320,000, was recorded 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 payments totaling $342,162 during fiscal year 2016. The Company made payments totaling $273,672 during fiscal year 2017. During fiscal year 2017 the Company decreased the estimated remaining payments expected to be paid under the agreement, which resulted in a decrease of $353,591 to the contingent consideration liability. Any change in the Company’s estimate is reflected as a change in the contingent consideration liability and as additional charges or credits to selling and administrative expenses. The Company made one payment in the quarter ended July 31, 2017 in the amount of $45,875 and one payment in the quarter ended October 31, 2017 in the amount of $66,276. As of October 31, 2017, the contingent consideration liability was $443,868 compared to $523,818 at April 30, 2017.

- 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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