Enzo Biochem, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Goodwill and intangible assets

Goodwill and intangible assets

12 Months Ended

Jul. 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure [Text Block]

Note 2 - Goodwill and intangible assets

Goodwill

The Company’s net carrying amount of goodwill is in the Clinical Labs segment and is $7,452 as of July 31, 2017 and 2016.

Intangible assets

The Company’s change in the net carrying amount of intangible assets, all in the Life Sciences segment is as follows:

	Gross			Accumulated Amortization			Net
July 31, 2015	$	27,838		$	(21,683	)	$	6,155
Amortization expense		—			(1,677	)		(1,677	)
Foreign currency translation		(188	)		132			(56	)
July 31, 2016	$	27,650		$	(23,228	)	$	4,422
Amortization expense		—			(1,520	)		(1,520	)
Foreign currency translation		(214	)		207			(7	)
July 31, 2017	$	27,436		$	(24,541	)	$	2,895

Intangible assets, all finite-lived, consist of the following:

	July 31, 2017						July 31, 2016
	Gross		Accumulated Amortization		Net		Gross		Accumulated Amortization		Net
Patents	$	11,027	$	(10,951)	$	76	$	11,027	$	(10,905)	$	122
Customer relationships		11,881		(9,083)		2,798		12,122		(8,331)		3,791
Website and acquired content		1,011		(1,011)		—		1,011		(1,011)		—
Licensed technology and other		484		(463)		21		485		(437)		48
Trademarks		3,033		(3,033)		—		3,005		(2,544)		461
Total	$	27,436	$	(24,541)	$	2,895	$	27,650	$	(23,228)	$	4,422

At July 31, 2017 information with respect to the intangibles acquired is as follows:

	Useful life assigned	Weighted average remaining useful life
Customer relationships	8-15 years	3 years
Trademarks	5 years	—
Other intangibles	10 years	2 years

At July 31, 2017, the weighted average remaining useful life of intangible assets was approximately two years.

Estimated amortization expense related to these finite-lived intangible assets for the five succeeding fiscal years ending July 31 is as follows:

2018	$	980
2019		829
2020		501
2021		266
2022		229

Amortization expense for the years ended July 31, 2017, 2016, and 2015 was $1,520, $1,677, and $1,770, respectively.

- 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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