Intangible Assets

6 Months Ended

Dec. 31, 2012

Intangible Assets Disclosure [Text Block]

Note 12: Intangible Assets

Intangible assets includes patents, customer relationships and technology and a covenant not-to-compete. The cost of patents 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. As of December 31, 2012, all payments have been made related to the payments under this agreement. We amortize 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, 2012 and June 30, 2012:

	December 31, 2012			June 30, 2012
Patents	$	7,009		$	6,934
Customer relationships and technology		2,163			2,163
Covenant not-to-compete		851			851
		10,023			9,948
Accumulated amortization		(5,189	)		(4,750	)
Total	$	4,834		$	5,198

Amortization expense related to intangibles was $214 and $209 for the three months ended December 31, 2012 and 2011, respectively, compared with $439 and $419 for the six months ended December 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 December 31, 2012, the estimated future amortization expense is as follows:

	Estimated Future Amortization Expense
Six months ending June 30, 2013	$	600
Fiscal year ending June 30, 2014		807
Fiscal year ending June 30, 2015		796
Fiscal year ending June 30, 2016		576
Fiscal year ending June 30, 2017		394
Fiscal year ending June 30, 2018		322
Thereafter		1,339
Total	$	4,834