| Intangible Assets |
Note 5 – Intangible Assets
Intangible assets consisted of the following at March 30, 2013 and December 29, 2012 (in thousands):
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March 30, 2013 |
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December 29, 2012 |
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Useful Life |
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Gross
Carrying
Amount |
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Accumulated
Amortization |
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Net
Carrying
Amount |
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Gross
Carrying
Amount |
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Accum.
Amort. and
Impairment |
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Net
Carrying
Amount |
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Intangible assets subject to amortization:
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Websites
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5 years |
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$ |
2,035 |
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$ |
(2,035 |
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$ |
— |
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$ |
2,035 |
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$ |
(2,035 |
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$ |
— |
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Internet platform intellectual property
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10 months |
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4,300 |
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(4,300 |
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— |
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4,300 |
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(4,300 |
) |
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— |
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Product design intellectual property
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9 years |
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2,750 |
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(798 |
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1,952 |
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2,750 |
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(722 |
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2,028 |
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Customer relationships
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4 years |
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2,050 |
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(2,050 |
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— |
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2,050 |
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(2,050 |
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— |
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Assembled workforce
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7 years |
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512 |
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(512 |
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— |
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512 |
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(512 |
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— |
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Favorable lease
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2.5 years |
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78 |
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(78 |
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— |
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78 |
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(78 |
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— |
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Domain and trade names
(
1
)
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10 years |
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1,199 |
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(31 |
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1,168 |
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5,067 |
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(3,868 |
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1,199 |
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Total
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$ |
12,924 |
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$ |
(9,804 |
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$ |
3,120 |
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$ |
16,792 |
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$ |
(13,565 |
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$ |
3,227 |
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(1)
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Prior to the
fourth quarter of 2012, domain and trade names had an indefinite useful life. During the fourth quarter of 2012, after an impairment charge was recognized, the gross carrying amount was based on the fair value of domain and trade name and the
Company determined an estimated useful life of 10 years.
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Intangibles subject to amortization are expensed on a straight-line basis. Amortization expense relating to intangibles
assets for the thirteen weeks ended March 30, 2013 and March 31, 2012 was $0.1 million, and $0.3 million, respectively.
The following table
summarizes the future estimated annual amortization expense for these assets over the next five years (in thousands):
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2013
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$ |
319 |
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2014
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|
425 |
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2015
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|
425 |
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2016
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|
425 |
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2017
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|
425 |
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Thereafter
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1,101 |
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Total
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$ |
3,120 |
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