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Table of Contents
SUPPORTSOFT, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS—(Continued)
Note 4. Property and Equipment
Property and equipment are stated at cost and consist of the following (in thousands):
December 31,
2008 2007
Computer equipment and software $ 4,310 $ 4,110
Furniture and office equipment 946 897
Leasehold improvements 1,112 1,172
6,368 6,179
Accumulated depreciation (5,093) (4,093)
$ 1,275 $ 2,086
Depreciation expense was $1.2 million, $1.3 million, and $988,000, for the years ended December 31, 2008, 2007, and 2006, respectively.
Note 5. Intangible assets
Amortization expense related to intangible assets was $202,000 in 2008, including amortization from the Core Networks acquisition of $90,000 and
expenses from the YTO acquisition of $112,000 and $1.1 million in each of the years ended December 31, 2007, and 2006. Effective December 31, 2007, we
ceased actively selling certain products we had previously acquired from Core Networks in 2004. In connection with this action and a re-evaluation of all of the
Core Network intangible assets, we recognized an impairment loss of approximately $1.7 million in the fourth quarter of 2007. An impairment loss was
recognized because the sum of the discounted future net cash flows expected to result from the use of the assets was less than the carrying amounts. Such
impairment loss was measured as the difference between the carrying amounts of the assets and their fair value. After recognition of the impairment loss, the
intangible asset at December 31, 2007 was $90,000 and had a remaining useful life of 9 months.
In December 2006, the Company acquired the use of a toll-free telephone number for cash consideration of $250,000. This asset has an indefinite useful
life. The intangible asset is tested for impairment annually or more often if events or changes in circumstances indicate that the carrying value may not be
recoverable.
The following table summarizes the components of intangible assets (in thousands):
As of
December 31,
2008 2007
Amortizable intangible assets $ 369 $ 90
Accumulated amortization (202) —
Indefinite-life intangible assets 250 250
Total intangible assets, net $ 417 $ 340
69
Source: SUPPORTSOFT INC, 10-K, March 11, 2009