Intangible Assets

3 Months Ended

Sep. 30, 2011

Intangible Assets Disclosure [Text Block]

Note 13: Intangible Assets

Intangible assets include patents and trademarks, customer relationships and technology and a covenant not-to-compete. The cost of patents and trademarks, and customer relationships and technology is amortized on a straight-line basis over estimated useful lives ranging from 3-17 years. We entered into a non-compete agreement with a former officer and director of the Company effective February 28, 2009. The agreement calls for payments over a four year period of declining amounts totaling $878, which includes $27 of imputed interest. As of September 30, 2011, current liabilities includes $80 and long-term liabilities includes $17 related to the payments under this agreement. We are amortizing the value of the non-compete over four years on a declining balance method.

The following table sets forth the components of intangible assets, as of September 30, 2011 and June 30, 2011:

	September 30, 2011			June 30, 2011
Patents and trademarks	$	6,779		$	6,774
Customer relationships and technology		2,163			2,163
Covenant not-to-compete		851			851
		9,793			9,788
Accumulated amortization		(4,147	)		(3,946	)
Total	$	5,646		$	5,842

Intangible amortization expense was $210 and $234 for the three months ended September 30, 2011 and 2010, respectively. This amortization expense related to certain intangible assets is included in cost of goods sold in the condensed consolidated statements of operations.

Based on the carrying amount of the intangible assets as of September 30, 2011, the estimated future amortization expense is as follows:

	Estimated Future Amortization Expense
Nine months ending June 30, 2012		$	702
Fiscal year ending June 30, 2013			843
Fiscal year ending June 30, 2014			749
Fiscal year ending June 30, 2015			737
Fiscal year ending June 30, 2016			561
Fiscal year ending June 30, 2017			422
Thereafter			1,632
Total		$	5,646