Note 7 - Intangible Assets

12 Months Ended

Dec. 31, 2013

Intangible Assets Disclosure [Text Block]

(7) Intangible Assets

Intangible assets consist of the following at December 31, 2013 and 2012 (dollars in thousands):

			December 31, 2013								December 31, 2012
	Average Life (Years)		Gross Intangible Assets			Accumulated Amortization			Net Intangible Assets		Gross Intangible Assets		Accumulated Amortization			Net Intangible Assets
Intangible assets:
Patents and trademarks		3	$	4,183		$	(4,034	)	$	149	$	4,075	$	(3,584	)	$	491
Trade names		8		442			(442	)		-		442		(442	)		-
Distribution rights		5		-	*		-			-		375		(144	)		231
Technology license		10		-	*		-			-		331		(52	)		279
Total intangible assets			$	4,625		$	(4,476	)	$	149	$	5,223	$	(4,222	)	$	1,001

* Reflects intangible assets adjusted to fair value as at December 31, 2013, as the company concluded, during the third quarter of 2013, the intangible assets associated with its investment in Pure Energy Vision were fully impaired.

In February 2011, the Company entered into marketing, distribution and licensing agreements with Pure Energy Solutions, a manufacturer of rechargeable alkaline batteries. The Company also simultaneously entered into an agreement with Premier Tech Home & Garden to take over its current distribution rights for Pure Energy batteries in Canada. The corresponding value of these distribution rights are reflected in the table above under the caption “Distribution rights.”

In June 2011, the Company made an investment in Pure Energy Visions Corporation, which is a stockholder in Pure Energy Solutions, in which the Company received a license to utilize rechargeable alkaline battery technology. The corresponding value of this license is reflected in the table above under the caption “Technology license.”

As of October 1, 2012, as a result of lower-than-anticipated sales of audio products, the Company determined that its recorded intangible assets associated with its acquisition of Aerial7 might be impaired. Accordingly, the Company performed an impairment analysis utilizing an undiscounted future cash flows approach and determined that the intangible assets associated with Aerial7 were fully impaired. As a result, during the quarter ended December 31, 2012, the Company recorded an intangible asset impairment charge of $1,158,000, which was net of accumulated amortization of $1,002,000. This impairment charge is included in the consolidated statements of operations under the caption “Asset impairment.”

In June 2013, the Company determined that its investment in Pure Energy Visions was fully impaired and, accordingly, recorded an impairment charge of the remaining net book value of its technology license and distribution rights from Pure Energy, which was recorded at approximately $456,000 on the Company’s balance sheet. The Company has no ability to utilize the technology related to the battery line, nor an immediate alternative manufacturing or supply capability, making it doubtful that the Company will be able to continue the product line associated with these rights.

Aggregate amortization expense for identifiable intangible assets totaled $504,000 and $1,253,000 for the years ended December 31, 2013 and 2012, respectively. Estimated amortization expense for each of the five succeeding years ended December 31 is as follows (dollars in thousands):

Year	Amortization Expense
2014		149
2015		-
2016		-
2017		-
2018		-

iGo, Inc. 10-K