Intangible Assets

9 Months Ended

Mar. 31, 2012

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 March 31, 2012, current liabilities includes $51 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 March 31, 2012 and June 30, 2011:

	March 31, 2012			June 30, 2011
Patents and trademarks	$	6,920		$	6,774
Customer relationships and technology		2,163			2,163
Covenant not-to-compete		851			851
		9,934			9,788
Accumulated amortization		(4,541	)		(3,946	)
Total	$	5,393		$	5,842

Amortization expense related to intangibles was $203 and $275 for the three months ended March 31, 2012 and 2011, respectively and was $623 and $768 for the nine months ended March 31, 2012 and 2011, 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 March 31, 2012, the estimated future amortization expense is as follows:

	Estimated Future Amortization Expense
Three months ending June 30, 2012		$	274
Fiscal year ending June 30, 2013			894
Fiscal year ending June 30, 2014			800
Fiscal year ending June 30, 2015			788
Fiscal year ending June 30, 2016			612
Fiscal year ending June 30, 2017			473
Thereafter			1,552
Total		$	5,393