Intangible Assets and Goodwill

3 Months Ended

12 Months Ended

Sep. 30, 2016

Jun. 30, 2016

Goodwill and Intangible Assets Disclosure [Abstract]



		September 30, 2016										June 30, 2016
Description	Amortization Period		Amount		Accumulated Amortization				Carrying Value			Amount			Accumulated Amortization				Carrying Value
Wetpaint technology	60 months		$	4,952		$	(3,368	)		$	1,584		$	4,952		$	(3,276	)		$	1,676
Wetpaint trademarks	276 months		1,453			(427		)		1,026			1,453			(415		)		1,038
Wetpaint customer relationships	60 months		917			(832		)		85			917			(827		)		90
Choose Digital licenses	60 months		829			(574		)		255			829			(559		)		270
Choose Digital software	60 months		627			(234		)		393			627			(212		)		415
DraftDay tradename	84 months		180			(50		)		130			180			(38		)		142
Draftday non-compete agreements	6 months		30			(30		)		—			30			(30		)		—
DraftDay internally generated capitalized software	60 months		1,498			(394		)		1,104			1,498			(303		)		1,195
DraftDay customer relationships	24 months		556			(456		)		100			556			(351		)		205
Rant trademarks	120 months		2,700			(56		)		2,644			—			—				—
Rant content	24 months		650			(68		)		582			—			—				—
Rant technology	60 months		1,500			(64		)		1,436			—			—				—
Rant advertising relationships	24 months		650			(68		)		582			—			—				—
Other	various		326			(18		)		308			326			(18		)		308
Total			$	16,868		$	(6,639	)		$	10,229		$	11,368		$	(6,029	)		$	5,339

See Note 3, Summary of Significant Accounting Policies, for a discussion of the write-downs recorded with respect to intangible assets related to the Wetpaint and Choose Digital businesses in the quarter ended December 31, 2015 and to the DraftDay business in the quarter ended June 30, 2016. The changes in the gross amounts and useful lives of intangibles related to the Wetpaint, Choose Digital and DraftDay businesses, and to internally generated capitalized software, are a result of these write-downs during the three months ended December 31, 2015 and June, 30, 2016, as well as the abandonment of certain technology as of January 1, 2016, and internal development costs. See Note 6, Acquisitions, for a detailed description of DraftDay and Rant assets and liabilities purchased and their fair values on the date of the acquisition.

Amortization of intangible assets included in selling, general and administrative expenses for the three months ended September 30, 2016 and 2015 amounted to $610 and $797, respectively.

Future annual amortization expense expected is as follows:



Years ending June 30,
2017	$	2,370
2018	$	3,026
2019	$	1,730
2020	$	1,367
2021	$	1,036

Goodwill consists of the following:



Description	Amount
Balance at July 1, 2016	$	11,270
Rant preliminary purchase price allocation	7,589
Balance at September 30, 2016	$	18,859

Intangible Assets and Goodwill

Intangible assets consist of the following:



		June 30, 2016							June 30, 2015
	Amortization			Accumulated			Carrying				Accumulated			Carrying
Description	Period	Amount		Amortization			Value		Amount		Amortization			Value
Wetpaint technology	60 months	$	4,952	$	(3,276	)	$	1,676	$	10,600	$	(2,336	)	$	8,264
Wetpaint trademarks	276 months	1,453		(415		)	1,038		5,800		(296		)	5,504
Wetpaint customer relationships	60 months	917		(827		)	90		2,000		(617		)	1,383
Wetpaint non-compete agreements	36 months	—		—			—		609		(313		)	296
Choose Digital licenses	60 months	829		(559		)	270		1,740		(355		)	1,385
Choose Digital software	60 months	627		(212		)	415		550		(112		)	438
DraftDay tradename	84 months	180		(38		)	142		—		—			—
Draftday non-compete agreements	6 months	30		(30		)	—		—		—			—
DraftDay internally generated capitalized software	60 months	1,498		(303		)	1,195		—		—			—
DraftDay customer relationships	24 months	556		(351		)	205		—		—			—
Internally generated capitalized software	36 months	—		—			—		1,610		(515		)	1,095
Other	various	326		(18		)	308		326		(8		)	318

Total		$	11,368	$	(6,029	)	$	5,339	$	23,235	$	(4,552	)	$	18,683

See Note 3, Summary of Significant Accounting Policies, for a discussion of the write-downs recorded with respect to intangible assets related to the Wetpaint and Choose Digital businesses in the quarter ended December 31, 2015 and to the DraftDay business in the quarter ended June 30, 2016. The changes in the gross amounts and useful lives of intangibles related to the Wetpaint, Choose Digital and DraftDay businesses, and to internally generated capitalized software, are a result of these write-downs during the three months ended December 31, 2015 and June, 30, 2016, as well as the abandonment of certain technology as of January 1, 2016, and internal development costs. See Note 6, Acquisitions, for a detailed description of DraftDay assets and liabilities purchased and their fair values on the date of the acquisition.

Amortization of intangible assets included in selling, general and administrative expenses for the years ended June 30, 2016 and 2015 amounted to $1,227 and $3,497, respectively. Future annual amortization expense expected is as follows:



Years Ending June 30	Amount
2017	$	1,194
2018	966
2019	919
2020	919
2021	670

The activity in the goodwill balance consists of the following:



Description	Amount
Balance at June 30, 2015	$	24,722
Acquisition of DDGG	1,591
Wetpaint impairment loss	(10,708		)
Choose Digital impairment loss	(4,335		)
Balance at June 30, 2016	$	11,270

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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