Intangible Assets

3 Months Ended

Sep. 30, 2012

Intangible Assets Disclosure [Text Block]

Note 12: Intangible Assets

Intangible assets includes patents, customer relationships and technology and a covenant not-to-compete. The cost of patents and customer relationships and technology is amortized on a straight-line basis over estimated useful lives ranging from 3-17 years. We entered into a non-compete agreement with a former officer and director of the Company effective February 28, 2009. The agreement calls for payments over a four year period of declining amounts totaling $878, which includes $27 of imputed interest. As of September 30, 2012, current liabilities includes $17 related to the payments under this agreement. We amortize the value of the non-compete over four years on a declining-balance method.

The following table sets forth the components of intangible assets, as of September 30, 2012 and June 30, 2012:

	September 30, 2012			June 30, 2012
Patents	$	6,944		$	6,934
Customer relationships and technology		2,163			2,163
Covenant not-to-compete		851			851
		9,958			9,948
Accumulated amortization		(4,975	)		(4,750	)
Total	$	4,983		$	5,198

Amortization expense related to intangibles was $225 and $210 for the three months ended September 30, 2012 and 2011, respectively. This amortization expense related to intangible assets is included in “Cost of goods sold” and “Selling, general and administrative expenses” in the condensed consolidated statements of operations.

Based on the carrying amount of the intangible assets as of September 30, 2012, the estimated future amortization expense is as follows:

	Estimated Future Amortization Expense
Nine months ending June 30, 2013		$	665
Fiscal year ending June 30, 2014			807
Fiscal year ending June 30, 2015			796
Fiscal year ending June 30, 2016			576
Fiscal year ending June 30, 2017			445
Fiscal year ending June 30, 2018			322
Thereafter			1,372
Total		$	4,983