NOTE

- GOODWILL AND OTHER INTANGIBLE ASSETS

The carrying values of goodwill and other intangible assets with indefinite lives are reviewed at least annually for possible impairment. The Company

may

first

assess qualitative factors in order to determine if goodwill and indefinite-lived intangible assets are impaired. If through the qualitative assessment it is determined that it is more likely than

not

that goodwill and indefinite-lived assets are

not

impaired,

further testing is required. If it is determined more likely than

not

that goodwill and indefinite-lived assets are impaired, or if the Company elects

not

first

assess qualitative factors, the Company’s impairment testing continues with the estimation of the fair value of the reporting unit using a combination of a market approach and an income (discounted cash flow) approach, at the reporting unit level. The estimation of the fair value of reporting unit requires significant management judgment with respect to revenue and expense growth rates, changes in working capital and the selection and use of an appropriate discount rate. The estimates of the fair value of reporting units are based on the best information available as of the date of the assessment. The fair value measurements of the reporting units are based on significant inputs

not

observable in the market and thus represent Level

measurements as defined by ASC

820

“Fair Value Measurements.” The use of different assumptions would increase or decrease estimated discounted future operating cash flows and could increase or decrease an impairment charge. Company management uses its judgment in assessing whether assets

may

have become impaired between annual impairment tests. Indicators such as adverse business conditions, economic factors and technological change or competitive activities

may

signal that an asset has become impaired.

A sustained and significant decline in the Company’s stock price in the

second

quarter of fiscal

2019

led management to believe that a triggering event occurred and that an interim goodwill impairment test was required for

one

of the reporting units in the Lighting Segment that contains goodwill, as of

December 31, 2018.

In accordance with ASU

2017

04,

“Simplifying the Test for Goodwill Impairment,” which was adopted in a prior period, the requirement to perform step

in the impairment test was

not

required. The result of the impairment test on the reporting unit in the Lighting Segment indicated that goodwill was impaired by

$20,165,000.

The Company will continue to monitor market conditions and other events that

may

result in a sustained and significant drop in its stock price which would require an interim goodwill impairment test.

The Company identified its reporting units in conjunction with its annual goodwill impairment testing. The Company has

two

reporting units that contain goodwill. There is

one

reporting unit within the Lighting Segment and

one

reporting unit within the Graphics Segment. The Company relies upon a number of factors, judgments and estimates when conducting its impairment testing including, but

not

limited to, the Company’s stock price, operating results, forecasts, anticipated future cash flows and marketplace data. There are inherent uncertainties related to these factors and judgments in applying them to the analysis of goodwill impairment.

As of

March 1, 2019,

the Company performed its annual goodwill impairment test on the

two

reporting units that contain goodwill. The preliminary goodwill impairment test on

one

reporting unit in the Lighting Segment passed with a business enterprise value that was

$38.9

million or

54%

above the carrying value of this reporting unit including goodwill. The preliminary goodwill impairment test of the reporting unit with goodwill in the Graphics Segment passed with an estimated business enterprise value that was

$3.0

million or

297%

above the carrying value of the reporting unit including goodwill. The definitive impairment test is expected to be completed in the

fourth

quarter of fiscal

2019.

It is anticipated that the results of the test will

not

change when the test is complete.

The following table presents information about the Company's goodwill on the dates or for the periods indicated:

Goodwill
(In thousands)	Lighting			Graphics
	Segment			Segment			Total
Balance as of June 30, 2018
Goodwill	$	94,564		$	28,690		$	123,254
Accumulated impairment losses		(65,191	)		(27,525	)		(92,716	)
Goodwill, net as of June 30, 2018	$	29,373		$	1,165		$	30,538

Goodwill Impairment	$	(20,165	)	$	--		$	(20,165	)

Balance as of March 31, 2019
Goodwill	$	94,564		$	28,690		$	123,254
Accumulated impairment losses		(85,356	)		(27,525	)		(112,881	)
Goodwill, net as of March 31, 2019	$	9,208		$	1,165		$	10,373

The Company performed its annual review of indefinite-lived intangible assets as of

March 1, 2019

and determined there was

impairment. The preliminary indefinite-lived intangible impairment test passed with a fair market value that was

$19.2

million or

462%

above its carrying value. The definitive indefinite-lived impairment test is expected to be completed in the

fourth

quarter of fiscal

2019.

It is anticipated that the results of the test will

not

change when the test is complete.

The following table presents the gross carrying amount and accumulated amortization by each major asset class:

	March 31, 2019
Other Intangible Assets	Gross
(In thousands)	Carrying		Accumulated		Net
	Amount		Amortization		Amount
Amortized Intangible Assets
Customer relationships	$	35,563	$	11,556	$	24,007
Patents		338		239		99
LED technology firmware, software		16,066		12,223		3,843
Trade name		2,658		692		1,966

Total Amortized Intangible Assets		54,625		24,710		29,915

Indefinite-lived Intangible Assets
Trademarks and trade names		3,422		--		3,422
Total Indefinite-lived Intangible Assets		3,422		--		3,422
Total Other Intangible Assets	$	58,047	$	24,710	$	33,337

	June 30, 2018
Other Intangible Assets	Gross
(In thousands)	Carrying		Accumulated		Net
	Amount		Amortization		Amount
Amortized Intangible Assets
Customer relationships	$	35,563	$	10,011	$	25,552
Patents		338		217		121
LED technology firmware, software		16,066		11,801		4,265
Trade name		2,658		609		2,049
Total Amortized Intangible Assets		54,625		22,638		31,987

Indefinite-lived Intangible Assets
Trademarks and trade names		3,422		--		3,422
Total Indefinite-lived Intangible Assets		3,422		--		3,422

Total Other Intangible Assets	$	58,047	$	22,638	$	35,409

Amortization expense (in thousands) for intangible assets was

$691

and

$691

for the

three

months ended

March 31, 2019

and

2018,

respectively, and

$2,071

and

$2,071

for the

nine

months ended

March 31, 2019

and

2018,

respectively. Future amortization expense (in thousands) associated with these intangible assets is expected to be

$2,761

2019,

$2,687

2020,

$2,682

2021,

$2,460

2022,

$2,412

2023,

and

$18,985

after

2023.