Intangible Assets

6 Months Ended

Mar. 31, 2013

Intangible Assets

Intangible Assets

Note 8.    Intangible Assets

The Company has patents, trademarks and other intangibles. As the patents have a definite life, they are amortized over lives ranging from two to fourteen years. The Company reviews patents for impairment whenever events or circumstances indicate that the carrying amount of a patent may not be recoverable. Recoverability of the patent asset is measured by a comparison of the carrying amount of the asset to the undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount exceeds the fair value of the asset.

As the trademarks have an indefinite life, the Company tests them for impairment at least annually as of August 31 (the annual impairment testing date). If the carrying value exceeds the fair value (determined by calculating a fair value based upon a discounted cash flow of an assumed royalty rate), impairment of the trademark may exist, resulting in a charge to earnings to the extent of the impairment. No impairment was recognized in the year ended September 30, 2012 because the fair value exceeded the carrying values. The Company also has non-compete agreements with remaining lives of 2 to 3 years.

Amortization of the patents, non-competes and other intangibles was $104 and $103 for the three months ended March 31, 2012 and 2013, respectively, and $216 and $208 for the six months ended March 31, 2012 and 2013, respectively.

The following represents a summary of intangible assets at September 30, 2012 and March 31, 2013:

September 30, 2012	Gross Amount		Accumulated Amortization			Carrying Amount
Patents	$	8,667	$	(6,891	)	$	1,776
Trademarks	3,800		—			3,800
Non-compete	1,090		(900		)	190
Other	330		(79		)	251
	$	13,887	$	(7,870	)	$	6,017

March 31, 2013	Gross Amount		Accumulated Amortization			Carrying Amount
Patents	$	8,667	$	(7,031	)	$	1,636
Trademarks	3,800		—			3,800
Non-compete	500		(345		)	155
Other	330		(112		)	218
	$	13,297	$	(7,488	)	$	5,809

Estimate of Aggregate Amortization Expense: Year Ended September 30,
2013 (remainder of fiscal year)	208
2014	416
2015	393
2016	332
2017	279