NOTE 7 - OTHER INTANGIBLE ASSETS

12 Months Ended

Jun. 30, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

NOTE 7 - OTHER INTANGIBLE ASSETS

FONAR CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

JUNE 30, 2016, 2015 and 2014

NOTE 7 - OTHER INTANGIBLE ASSETS

Other intangible assets, net of accumulated amortization, at June 30, 2016 and 2015 are comprised of:

	As of June 30,
	2016		2015
Capitalized software development costs	$	7,004,847	$	7,004,847
Patents and copyrights		4,571,821		4,547,545
Non-competition agreements		4,100,000		4,100,000
Customer relationships		3,800,000		3,800,000
		19,476,668		19,452,392
Less: Accumulated amortization		11,757,310		10,502,232
	$	7,719,358	$	8,950,160

Information related to the above intangible assets for the years ended June 30, 2016, 2015 and 2014 is as follows:

	As of June 30,
	2016			2015			2014
Balance – Beginning of Year	$	8,950,160		$	10,508,843		$	11,904,248
Amounts capitalized		113,072			139,534			214,211
Software or patents written off		(88,796	)		(413,589	)		(250,523	)
Amortization		(1,255,078	)		(1,284,628	)		(1,359,093	)
Balance – End of Year	$	7,719,358		$	8,950,160		$	10,508,843

Amortization of patents and copyrights for the years ended June 30, 2016, 2015 and 2014 amounted to $187,553, $183,272 and $178,836, respectively.

Amortization of capitalized software development costs for the years ended June 30, 2016, 2015 and 2014 was $291,810, $325,642 and $407,876, respectively.

Amortization of non-competition agreements for the years ended June 30, 2016, 2015 and 2014 amounted to $585,714, $585,714 and $585,714, respectively.

Amortization of customer relationships for the years ended June 30, 2016, 2015 and 2014 amounted to $190,000, $190,000 and $186,667, respectively.

The estimated amortization of other intangible assets for the five years ending June 30, 2021 and thereafter is as follows:

For the Years Ending June 30,		Total		Patents and Copyrights		Capitalized Software Development Costs		Non- competition		Customer Relation-ships
	2017	$	1,232,261	$	196,547	$	260,000	$	585,714	$	190,000
	2018		1,155,571		206,524		173,333		585,714		190,000
	2019		988,324		212,610		—		585,714		190,000
	2020		791,112		210,635		—		390,477		190,000
	2021		393,075		203,075		—		—		190,000
	Thereafter		3,159,015		942,348		—		—		2,216,667
		$	7,719,358	$	1,971,739	$	433,333	$	2,147,619	$	3,166,667

The weighted average amortization period for other intangible assets is 10.7 years and they have no expected residual value.