COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS

3 Months Ended

Sep. 30, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS

NOTE 3. COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS

Investments

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

	September 30, 2017		June 30, 2017
Marketable equity securities	$	885	$	718

Investments at September 30, 2017 and June 30, 2017 had an aggregate cost basis of $961,000 and $663,000 respectively. During the quarter ended September 30, 2017 the investments incurred gross unrealized losses of $131,000 and related income tax benefit of approximately $22,000 recorded in other comprehensive income. At June 30, 2017 the investments included net unrealized gains of $55,000 (unrealized gains of $57,000 offset by unrealized losses of $2,000) and related tax expense of approximately $22,000 recorded in other comprehensive income.

Inventory

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

	September 30, 2017		June 30, 2017
Raw materials /purchased components	$	1,275	$	1,127
Work in process		960		747
Sub-assemblies /finished components		1,114		1,018
Finished goods		163		193
Total inventory	$	3,512	$	3,085

Intangibles

Intangibles consist of the following (in thousands):

	September 30, 2017			June 30, 2017
Covenant not to compete	$	52		$	52
Trade name		50			50
Customer list and backlog		167			167
Patent-related costs		161			153
Total intangibles	$	430		$	422
Less accumulated amortization		(114	)		(102	)
	$	316		$	320

Both the covenant not to compete and the customer list and backlog relate to assets acquired in conjunction with the business acquisitions described in Note 2 above and are being amortized over various periods not to exceed ten years. During the first quarter of fiscal 2017, we recognized an impairment charge for the remaining un-amortized customer list related to the Huber business in the amount of $113,000, as we do not expect there to be any significant future cash flows resulting from these customer relationships. The trade name relates exclusively to Fineline 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 both patent applications and a patent issuance, and will be amortized over the estimated life of the product(s) that is or will be utilizing the technology, or expensed immediately in the event the patent office denies the issuance of the patent.