Intangible Assets

6 Months Ended

Dec. 31, 2011

Intangible Assets Disclosure [Text Block]

Note 14: Intangible Assets

Intangible assets includes 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 December 31, 2011, current liabilities includes $67 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 December 31, 2011 and June 30, 2011:

	December 31, 2011			June 30, 2011
Patents and trademarks	$	6,821		$	6,774
Customer relationships and technology		2,163			2,163
Covenant not-to-compete		851			851
		9,835			9,788
Accumulated amortization		(4,347	)		(3,946	)
Total	$	5,488		$	5,842

Amortization expense related to intangibles was $419 and $493 for the six months ended December 31, 2011 and 2010, respectively. This amortization expense related to intangible assets is included in cost of goods sold and selling, general and administrative expenses in the condensed consolidated statements of operations.

Based on the carrying amount of the intangible assets as of December 31, 2011, the estimated future amortization expense is as follows:

	Estimated Future Amortization Expense
Six months ending June 30, 2012		$	404
Fiscal year ending June 30, 2013			821
Fiscal year ending June 30, 2014			731
Fiscal year ending June 30, 2015			723
Fiscal year ending June 30, 2016			573
Fiscal year ending June 30, 2017			383
Thereafter			1,853
Total		$	5,488