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Note 4 - Intangible Assets and Goodwill
12 Months Ended
Dec. 31, 2021
Notes to Financial Statements  
Goodwill and Intangible Assets Disclosure [Text Block]

4.  INTANGIBLE ASSETS AND GOODWILL

 

The carrying amounts of the Company’s patent intangible assets were $0 and $58,000 as of December 31, 2021 and 2020, respectively, which includes accumulated amortization of $610,000 and $601,000 as of December 31, 2021 and 2020, respectively.  Amortization expense for patent intangible assets was $9,000 and 12,000 for the years ended December 31, 2021 and 2020, respectively. Due to a strategic realignment of its intellectual property, the Company abandoned it only remaining unamortized patent intangible asset during the year ended December 31, 2021. As of December 31, 2021, all patent intangible assets are fully amortized.

 

The Company annually, or more frequently if events or circumstances indicate a need, tests the carrying amount of goodwill for impairment. The Company performs its annual simplified impairment test in the fourth quarter of each year. In December 2018, the Company adopted the provisions of ASU 2017-04,Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment". The provisions of ASU 2017-04 eliminate the requirement to calculate the implied fair value of goodwill to measure a goodwill impairment charge. Instead, entities will record an impairment charge based on the excess of a reporting unit's carrying amount over its fair value. Entities that have reporting units with zero or negative carrying amounts, will no longer be required to perform a qualitative assessment assuming they pass the simplified impairment test. The Company continues to have only one reporting unit, Identity Management which, at December 31, 2021, had a negative carrying amount of approximately $15,092,000. Based on the results of the Company's impairment testing, the Company determined that its goodwill was not impaired during the years ended December 31, 2021 and 2020.