Intangible Asset

12 Months Ended

Jun. 30, 2012

Intangible Asset [Abstract]

Intangible Asset

3.      Intangible Asset

During the quarter ended March 31, 2012, we modified a distribution agreement to reacquire certain distribution rights related to the Res-Q product line.  As part of this modification, we paid consideration of $390,000, comprised of forgiving a $60,000 receivable and recording liabilities of $330,000 to provide inventory upgrades and service agreements at no cost.  We have recorded those costs as an intangible asset, which will be amortized to cost of revenues over the remaining life of the distribution agreement or 31 months.  Total intangible amortization expense for the year ending June 30, 2012 was $75,000.  Estimated intangible amortization expense for the three years ending June 30, 2013 through 2015 is $151,000, $151,000 and $13,000, respectively.