RMG Networks Holding Corp - 10-K filing on 2017-03-02

Intangible Assets

12 Months Ended

Dec. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

3. Intangible Assets

The intangible assets resulted from the valuation related to the acquisition of Symon and the application of Financial Accounting Standards Board Standard Codification 805, “Business Combinations”.

The carrying value of the Company’s intangible assets at December 31, 2016 were as follows:


	Weighted
	Average	Gross						Net
(in thousands)	Amortization	Carrying		Accumulated		Charge for		Carrying
	Period (Years)	Amount		Amortization		Impairments		Amount
Software and technology	2	$	4,108	$	(2,054)	$	—	$	2,054
Customer relationships	4		7,089		(2,363)		—		4,726
Total		$	11,197	$	(4,417)	$	—	$	6,780

The carrying values of the Company’s intangible assets at December 31, 2015, were as follows:


	Weighted
	Average	Gross						Net
(in thousands)	Amortization	Carrying		Accumulated		Charge for		Carrying
	Period (Years)	Amount		Amortization		Impairments		Amount
Software and technology	3	$	4,108	$	(1,027)	$	—	$	3,081
Customer relationships	5		7,089		(1,182)		—		5,907
Customer order backlog	—		322		(322)		—		—
Total		$	11,519	$	(2,531)	$	—	$	8,988

Amortization expense for the year ended December 31, 2016 and 2015 was $2.2 million and $2.5 million, respectively.

Future amortization expense for these assets for the five years ending December 31 and thereafter is as follows:


(in thousands)
2017	$	2,208
2018		2,208
2019		1,182
2020		1,182
2021		—
Thereafter		—
Total	$	6,780