Intangible Assets

3 Months Ended

Mar. 31, 2013

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 March 31, 2013, all payments required by this agreement have been made. We amortized 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, 2013 and June 30, 2012:

	March 31,			June 30,
	2013			2012
Patents	$	7,169		$	6,934
Customer relationships and technology		2,163			2,163
Covenant not-to-compete		—			851
		9,332			9,948
Accumulated amortization		(4,549	)		(4,750	)
Total	$	4,783		$	5,198

Amortization expense related to intangibles was $211 and $203 for the three months ended March 31, 2013 and 2012, respectively, compared with $650 and $623 for the nine months ended March 31, 2013 and 2012, 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, 2013, the estimated future amortization expense is as follows:

	Estimated Future Amortization
	Expense
Three months ending June 30, 2013	$	271
Fiscal year ending June 30, 2014		826
Fiscal year ending June 30, 2015		815
Fiscal year ending June 30, 2016		638
Fiscal year ending June 30, 2017		499
Fiscal year ending June 30, 2018		377
Thereafter		1,357
Total	$	4,783