Annual report pursuant to Section 13 and 15(d)

7. INTANGIBLE ASSETS

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7. INTANGIBLE ASSETS
12 Months Ended
Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]  
INTANGIBLE ASSETS

Intangible assets consisted of the following (in thousands):

 

        December 31, 2016     December 31, 2015  
    Useful
Life
(Years)
    Gross     Accumulated
Amortization
    Net Book
Value
    Gross      Accumulated
Amortization
    Net Book
Value
 
Non-Amortizing:                                          
Kinergy tradename           $ 2,678     $ -     $ 2,678     $ 2,678     $ -       2,678   
Amortizing:                                                        
Customer relationships   10       4,741       (4,741            4,741       (4,741 )      
Total intangible assets, net           $ 7,419     $ (4,741   $ 2,678     $ 7,419     $ (4,741     2,678   

 

Kinergy Tradename – The Company recorded a tradename valued at $2,678,000 in 2006 as part of its acquisition of Kinergy. The Company determined that the Kinergy tradename has an indefinite life and therefore, rather than being amortized, will be tested annually for impairment. The Company did not record any impairment of the Kinergy tradename for the years ended December 31, 2016, 2015 and 2014.

 

Customer Relationships The Company recorded customer relationships valued at $4,741,000 as part of its acquisition of Kinergy. The Company established a useful life of ten years for these customer relationships. Amortization expense associated with intangible assets totaled $0, $108,000 and $474,000 for the years ended December 31, 2016, 2015 and 2014, respectively.