. GOODWILL AND INTANGIBLES

The following table presents information about the Company's goodwill and identifiable intangible assets on the dates indicated:

	June 30, 2020										June 30, 2019
	Cost		Accumulated Amortization			Impairment			Net		Cost		Accumulated Amortization			Impairment		Net
Bytewise	$	3,034	$	-		$	(3,034	)	$	-	$	3,034	$	-		$	-	$	3,034
Private Software Company		1,634		-			(619	)		1,015		1,634		-					1,634
Goodwill		4,668		-			(3,653	)		1,015		4,668		-			-		4,668
Identifiable intangible assets		14,155		(6,316	)		(2,842	)		4,997		18,707		(10,247	)		-		8,460

Identifiable intangible assets consist of the following (in thousands):

	June 30, 20 20			June 30, 201 9
Non-compete agreements	$	-		$	600
Trademarks and trade names		2,070			2,070
Completed technology		2,010			2,010
Customer relationships		630			5,580
Software development		9,445			8,122
Other intangible assets		-			325
Total cost		14,155			18,707
Accumulated amortization		(6,316	)		(10,247	)
Intangibles impairment		(2,842	)		-
Total net balance	$	4,997		$	8,460

Identifiable intangible assets are being amortized on a straight-line basis over the period of expected economic benefit. Amortization expense was

$1.9

million,

$2.3

million and

$2.0

million for the year ended

June 30, 2020,

2019

and

2018,

respectively. The estimated aggregate amortization expense for each of the next

five

years, and thereafter, is as follows:

Fiscal Year	(In thousands)
2021	$	1,377
2022		1,162
2023		928
2024		657
2025		501
Thereafter		373
	$	4,997

The following tables provides Goodwill carried at fair value measuring on a non-recurring basis as of

June 30, 2020.

There were

assets and liabilities carried at fair value measured on a non-recurring basis as of

June 30, 2019:

(in thousands)	Fair Value Measurements at June 30, 2020								Expense
Goodwill	Carrying Value		Level 1		Level 2		Level 3		Year ended June 30, 2020
private software company	$	1,015		-		-	$	1,015	$	619
Bytewise		-		-		-		-	$	3,034

The Company's acquisition of Bytewise in

2011

and a private software company in

2017

resulted in the recognition of goodwill totaling

$4.7

million. The Company is required, on a set date, to annually assess its goodwill in order to determine whether or

not

it is more likely than

not

that the fair value of the reporting unit's goodwill exceeded its carrying amount. Determining the fair value of a reporting unit is subjective and requires the use of significant estimates and assumptions.

The Company contracted with a professional valuation firm “the firm” to perform a quantitative analysis (commonly referred to as “Step One”) for its

February 1, 2020

annual assessment of goodwill associated with its purchase of a private software company. The firm assisted the Company in estimating fair value using an income approach based on the present value of future cash flows. The Company believes this approach yields the most appropriate evidence of fair value. And during the

March

quarter fiscal year

2020

determined the fair value assessment of the software development company's goodwill exceeded the carrying amount.

The Company performed a qualitative analysis of its Bytewise reporting unit for its

October 1, 2019

annual assessment of goodwill (commonly referred to as “Step Zero”). From a qualitative perspective, in evaluating whether it is more likely than

not

that the fair value of a reporting unit exceeds its carrying amount, relevant events and circumstances are taken into account, with greater weight assigned to events and circumstances that most affect the fair value or the carrying amounts of its assets. Items that were considered included, but were

not

limited to, the following: macroeconomic conditions, industry and market conditions, cost factors, overall financial performance and changes in management or key personnel.

The Company determined the COVID-

pandemic a triggering event at the private software company and Bytewise due to its negative impact on the Company's revenue. Under ASC

350

“Intangibles- Goodwill and Other”, the Company is required to test whether it is more likely than

not

the fair value of the reporting units goodwill exceeded its carrying amount. As of period ending

March 31, 2020,

the Company determined the precise impact to the business was

not

knowable, and therefore, performed a sensitivity analysis assuming an annualized percentage reduction of

25%

of the projected revenue in the

June

quarter fiscal year

2020

and fiscal year

2021

and calculated fair value over the book value of equity. After assessing these and other factors the Company determined, during the

March

quarter fiscal year

2020,

that it was more likely than

not

that the fair value of the Bytewise reporting unit and private software company's fair value exceeded its carrying amount and the Company did

not

record an impairment charge.

During the

fourth

quarter of fiscal year

2020

the Company, considering the COVID-

pandemic a triggering event for the private software company and Bytewise due to a drop in sales, performed the goodwill impairment assessment by running a quantitative analysis (commonly referred to as “Step One”) for both the Bytewise reporting unit and the private software company. The Company determined that the fair value of the Bytewise and private software company using a discounted cash flow method for both reporting units. Based on this analysis, it was determined that the fair value of the reporting unit is below their respective carrying amounts. As a result, the Company concluded that Intangible Assets were impaired

$2.9

million and Goodwill was impaired

$0.6

million at the private software company and Goodwill of

$3.0

million was impaired at the Bytewise reporting unit as of

June 30, 2020.