COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS

9 Months Ended

Mar. 31, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS

NOTE 5. COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS

Inventory

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

	March 31, 2018		June 30, 2017
Raw materials /purchased components	$	1,164	$	1,127
Work in process		1,223		746
Sub-assemblies /finished components		891		1,018
Finished goods		104		193
Total inventory	$	3,382	$	3,084

Investments

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

	March 31, 2018		June 30, 2017
Marketable equity securities	$	1,438	$	718

Investments at March 31, 2018 and June 30, 2017 had an aggregate cost basis of $1,469,000 and $663,000, respectively. During the quarter ended March 31, 2018, the investments incurred unrealized gains of $74,000 offset by unrealized losses of $15,000. During the nine months ended March 31, 2018, the investments incurred unrealized losses of $105,000 offset by unrealized gains of $19,000 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.

Intangibles

Intangibles consist of the following (in thousands):

	March 31, 2018			June 30, 2017
Covenant not to compete		30			30
Patent-related costs		164			153
Total intangibles	$	194		$	183
Less accumulated amortization		(49	)		(34	)
	$	145		$	149

The covenant not to compete relates to assets acquired in conjunction with the Huber business acquisition described in Note 2 above and is being amortized over five years. 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. We anticipate recording amortization expense of approximately $5,000 in the remainder of fiscal 2018, $28,000 in fiscal 2019, $26,000 in fiscal 2020, $23,000 in each of fiscal 2021 and 2022, $19,000 in fiscal 2023, and the remaining $21,000 thereafter.