Composition of Certain Financial Statement Items

12 Months Ended

Jun. 30, 2014

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Composition of Certain Financial Statement Items

4. Composition of Certain Financial Statement Items

Inventory

Inventory is stated at the lower of cost (first-in, first-out) or market and consists of the following (in thousands):

	June 30,
	2014		2013
Raw materials /purchased components	$	878	$	1,640
Work in process		525		572
Sub-assemblies /finished components		823		1,291
Finished goods		374		331
Total inventory	$	2,600	$	3,834

Investments

Investments are stated at market value and consist of the following (in thousands):

	June 30,
	2014		2013
Marketable equity securities	$	1,058	$	370

Investments at June 30, 2014 and June 30, 2013 had an aggregate cost basis of $857,000 and $365,000, respectively, gross unrealized gains aggregating $209,000 and $5,000, respectively, and unrealized losses of $7,000 and $0, respectively. During the fiscal year ended June 30, 2014, we sold certain of our investments in marketable equity securities of publicly held companies and recorded realized gains of $65,000. There were no sales of investments during fiscal 2013.

Equipment and Leasehold Improvements

Equipment and leasehold improvements consist of the following (in thousands):

	June 30,
	2013			2013
Office furnishings and fixtures	$	2,054		$	2,207
Machinery and equipment		4,574			4,626
Leasehold improvements		2,312			2,312
Total		8,940			9,145
Less: Accumulated depreciation and amortization		(7,365	)		(7,080	)
	$	1,575		$	2,065

Depreciation expense, which includes capital lease amortization, for the years ended June 30, 2014 and 2013 amounted to $527,000 and $582,000, respectively.

Accrued Liabilities

Accrued liabilities consist of the following (in thousands):

	June 30,
	2014		2013
Warranty	$	237	$	323
Payroll and related items		240		243
Accrued losses on development contracts		468		176
Termination benefits		—		165
Accrued inventory in transit		22		142
Other		123		227
	$	1,090	$	1,276

Accumulated Other Comprehensive Income

Accumulated other comprehensive income consists of the following (in thousands):

	June 30,
	2014			2013
Unrealized gain on marketable equity securities	$	262		$	5
Less: Reclassification of gains included in net loss		(65	)		—
Unrealized gain on marketable securities, net	$	197		$	5

Intangibles

Intangibles at June 30, 2014 consist of approximately $68,000 in legal fees incurred in connection with patent applications, and will be amortized over the life of the applicable patent upon its issuance as well as approximately $37,000 of capitalized software costs relating to internally developed software which will be amortized over the estimated product life of the underlying product currently in development.