COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS

3 Months Ended

Sep. 30, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Composition of Certain Financial Statement Items

NOTE 3. 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):

	September 30,  2015		June 30,  2015
Raw materials /purchased components	$	1,915	$	2,025
Work in process		1,007		1,030
Sub-assemblies /finished components		1,113		1,095
Finished goods		216		160
Total inventory	$	4,251	$	4,310

Intangibles

Intangibles consist of the following (in thousands):

	September 30, 2015			June 30,  2015
Capitalized software development costs	$	73		$	73
Covenant not to compete		52			52
Trade name		54			54
Customer list and backlog		316			316
Patent-related costs		97			96
Total intangibles	$	592		$	591
Less accumulated amortization		(80	)		(44	)
	$	512		$	547

Capitalized software development costs relate to internally developed software, which are being amortized over the estimated product life of the underlying product which was released for sale during the fourth quarter of fiscal 2015. Both the covenant not to compete and the customer list and backlog relate to assets acquired in conjunction with the business acquisitions more fully described in Note 2 above and are being amortized over various periods not to exceed ten years. The trade name relates exclusively to Fineline Molds and has an indefinite life, subject to impairment loss assessment annually, or more frequently if certain conditions exist. Patent-related costs consist of legal fees incurred in connection with patent applications, and will be amortized over the life of the applicable patent upon its issuance, or expensed immediately in the event the patent office denies the issuance of the patent.