Intangible Assets

12 Months Ended

Jun. 30, 2014

3.	Intangible Assets

Intangible assets consist of the following based on our determination of the fair value of identifiable assets acquired (see footnote 2):

	June 30, 2014
	Weighted Average Amortization Period (in Years)		Gross Carrying Amount		Accumulated Amortization		Net
Trade names		7	$	32	$	2	$	30
Licenses		7		550		29		521
Customer relationships		3		477		59		418
Device registration		7		218		12		206
Covenants not to compete		5		955		72		883
Clinical protocols				19,870		--		19,870
Total		5.3	$	22,102	$	174	$	21,928

Amortization of intangible assets was $174 for the year ended June 30, 2014. Clinical protocols have not yet been introduced to the marketplace and are therefore not yet subject to amortization. Our estimated future amortization expense for years ended June 30, is as follows:

Year Ended June 30,

2015	$	464
2016		464
2017		405
2018		305
2019		233
Thereafter		187
Total	$	2,058

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 exchanged consideration of $390, comprised of forgiving a $60 receivable and recording liabilities of $330 to provide inventory upgrades and service agreements at no cost. We recorded those costs as an intangible asset, which was amortized to cost of revenues over the remaining life of the distribution agreement or 31 months. Total intangible amortization expense charges for the years ending June 30, 2013 and 2012 were $151 and $75, respectively.

As of June 30, 2013, while performing our annual test for impairment, we determined this asset was impaired as a result of the Res-Q patent litigation and the associated decrease and delay in projected revenues during the remaining life of the intangible asset. Therefore, the intangible asset was considered fully impaired and the carrying value of $164 was written off to cost of revenues.