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 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.

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

Fiscal

As of

March 1, 2020,

the Company performed its annual goodwill impairment test on the

two

reporting units that contain goodwill. The goodwill impairment test of the reporting unit in the Lighting Segment passed with a business enterprise value of

$31.6

million or

33%

above the carrying value of this reporting unit including goodwill. The goodwill impairment test of the reporting unit in the Graphics Segment passed with a business enterprise value of

$4.7

million or

619%

above the carrying value of the reporting unit including goodwill.

A significant decline in the Company's stock price during

March 2020

related to the COVID-

pandemic led management to conclude that a triggering event occurred. As a result, an interim goodwill impairment test subsequent to the

March 1

testing date was required for both reporting units as of

March 31, 2020

The result of the impairment test on both reporting units indicated that goodwill was

not

impaired

The Company has performed an assessment of its goodwill from the date of the interim test as of

March 31, 2020

through the balance sheet date for possible triggering events and has concluded that there were

triggering events that would indicate the assets are impaired.

Fiscal

2019:

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

two

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

December 31, 2018.

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

$20.2

million. As a result of the full impairment of the goodwill of this reporting unit, the Company has

two

remaining reporting units that contain goodwill;

one

reporting unit in the Lighting Segment and

one

reporting unit in the Graphics Segment.

As of

March 1, 2019,

the Company performed its annual goodwill impairment test on the

two

remaining 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 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 Company has performed an assessment of its goodwill from the date of the annual test through the balance sheet date for possible triggering events and has concluded that there were

triggering events that would indicate the assets are impaired.

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

(In thousands)	Lighting			Graphics
	Segment			Segment			Total
Balance as of June 30, 2019
Goodwill	$	94,564		$	28,690		$	123,254
Accumulated impairment losses		(85,356	)		(27,525	)		(112,881	)
Goodwill, net as of June 30, 2019	$	9,208		$	1,165		$	10,373

Balance as of June 30, 2020
Goodwill	$	86,711		$	28,690		$	115,401
Accumulated impairment losses		(77,503	)		(27,525	)		(105,028	)
Goodwill, net as of June 30, 2020	$	9,208		$	1,165		$	10,373

In fiscal

2020,

the Company wrote-off the goodwill and impairment loss for a dissolved entity. The net impact to the consolidated financial statements, including the goodwill, net balance, was zero.

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

March 1, 2020

and determined there was

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

$16.8

million or

392%

above its carrying value. The Company has performed an assessment of its intangible asset from the date of the annual test through the balance sheet date for possible triggering events and has concluded that there were

triggering events that would indicate the asset is impaired.

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

March 1, 2019

and determined there was

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

$19.2

million or

462%

above its carrying value.

The gross carrying amount and accumulated amortization by major other intangible asset class is as follows:

Other Intangible Assets	June 30, 2020
(In thousands)	Gross
	Carrying		Accumulated		Net
	Amount		Amortization		Amount
Amortized Intangible Assets
Customer relationships	$	35,563	$	14,129	$	21,434
Patents		338		277		61
LED technology firmware, software		16,066		12,852		3,214
Trade name		2,658		829		1,829
Total Amortized Intangible Assets		54,625		28,087		26,538

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	$	28,087	$	29,960

Other Intangible Assets	June 30, 2019
(In thousands)	Gross
	Carrying		Accumulated		Net
	Amount		Amortization		Amount
Amortized Intangible Assets
Customer relationships	$	35,563	$	12,070	$	23,493
Patents		338		247		91
LED technology firmware, software		16,066		12,364		3,702
Trade name		2,658		719		1,939
Total Amortized Intangible Assets		54,625		25,400		29,225

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	$	25,400	$	32,647

(In thousands)	2020		2019

Amortization Expense of Other Intangible Assets	$	2,687	$	2,762

The Company expects to record annual amortization expense as follows:

(In thousands)

2021	$	2,682
2022	$	2,461
2023	$	2,412
2024	$	2,412
2025	$	2,412
After 2025	$	14,159