Goodwill and Other Intangible Assets:

9 Months Ended

Mar. 31, 2012

Notes to Financial Statements

Goodwill and Other Intangible Assets:

8. Goodwill and Other Intangible Assets:

Goodwill represents the excess of the purchase price over the fair value of the net assets acquired in connection with the Company's acquisition of Altamira and SBI’s acquisition of assets. Goodwill amounted to $589,900 and $447,900 as of March 31, 2012 and June 30, 2011, respectively, of which $142,000 relates to the newly acquired assets of SBI as of March 31, 2012 and $447,900 relates to the acquisition of Altamira as of the end of both periods.

The components of other intangible assets are as follows:

	Useful Lives	Cost	Accumulated Amortization	Net
At March 31, 2012:
Technology	5/10 yrs	$     864,000	$     323,500	$   540,500
Customer relationships	10 yrs	237,000	189,400	47,600
Sublicense agreements	10 yrs	294,000	11,000	283,000
Non-compete agreements	5 yrs	120,000	103,400	16,600
Other intangible assets	5 yrs	143,900	126,000	17,900
		$  1,658,900	$     753,300	$   905,600
	Useful Lives	Cost	Accumulated Amortization	Net
At June 30, 2011:
Technology	5 yrs	$     300,000	$     275,000	$     25,000
Customer relationships	10 yrs	237,000	177,200	59,800
Non-compete agreement	5 yrs	102,000	93,500	8,500
Other intangible assets	5 yrs	139,000	120,000	19,000
		$     778,000	$     665,700	$   112,300

Total amortization expense was $26,300 and $26,500 for the three months ended March 31, 2012 and 2011, respectively and $87,600 and $84,900 for the nine months ended March 31, 2012 and 2011, respectively. As of March 31, 2012, estimated future amortization expense related to intangible assets is $30,800 for the remainder of the fiscal year ending June 30, 2012, $111,600 for fiscal 2013, $107,800 for fiscal 2014, $104,200 for fiscal 2015, $108,900 for fiscal 2016, and $442,300 thereafter.