Note 4 - Intangible Assets and Goodwill

6 Months Ended

Dec. 31, 2017

Goodwill and Intangible Assets Disclosure [Text Block]

Intangible Asset

and Goodwill

	Amount
Goodwill at July 1, 2017	$	13,195,000
Goodwill recognized in SynGen acquisition		781,000
Goodwill at December 31, 2017	$	13,976,000

Intangible assets consist of the following based on

the Company’s determination of the fair value of identifiable assets acquired:

As of December 31, 2017
	Weighted Average Amortization Period (in Years)		Gross Carrying Amount		Accumulated Amortization		Net
Trade names		7	$	56,000	$	21,000	$	35,000
Developed technology		10		318,000		16,000		302,000
Licenses		7		489,000		271,000		218,000
Customer relationships		3		490,000		456,000		34,000
Device registration		7		92,000		65,000		27,000
Amortizable i ntangible assets				1,445,000		829,000		616,000
In process technology				1,143,000		--		1,143,000
Clinical protocols				19,870,000		--		19,870,000
Total			$	22,458,000	$	829,000	$	21,629,000

As of June 30, 2017
	Weighted Average Amortization Period (in Years)		Gross Carrying Amount		Accumulated Amortization		Impairment		Net
Trade names		7	$	30,000	$	14,000			$	16,000
Licenses		7		482,000		233,000				249,000
Customer relationships		3		443,000		443,000				--
Device registration		7		90,000		60,000				30,000
Covenants not to compete		5		955,000		645,000	$	310,000		--
Amortizable intangible assets				2,000,000		1,395,000		310,000		295,000
Clinical protocols				19,870,000		--				19,870,000
Total			$	21,870,000	$	1,395,000	$	310,000	$	20,165,000

As of June 30, 2016
	Weighted Average Amortization Period (in Years)		Gross Carrying Amount		Accumulated Amortization		Net
Trade names		7	$	29,000	$	10,000	$	19,000
Licenses		7		462,000		157,000		305,000
Customer relationships		3		424,000		335,000		89,000
Device registration		7		86,000		49,000		37,000
Covenants not to compete		5		955,000		454,000		501,000
Amortizable intangible assets				1,956,000		1,005,000		951,000
Clinical protocols				19,870,000		--		19,870,000
Total			$	21,826,000	$	1,005,000	$	20,821,000

The change in the gross carrying amount is due to

assets acquired in the SynGen acquisition and foreign currency exchange fluctuations. There was a

$310,000

impairment of the covenants

not

to compete intangible assets during the year ended

June 30, 2017

as the assumed revenues that were in the fair value estimate have been delayed due to the delay in the clinical trial. Amortization of intangible assets was

$68,000

for the

six

months ended

December 31, 2017

and

$359,000

and

$438,000

for the years ended

June 30, 2017

and

2016.

Clinical protocols and in process technology have

not

yet been introduced to the market place and are therefore

not

yet subject to amortization. The Company’s estimated future amortization expense for subsequent years are as follows:

Year Ended December 31,
2018	$	137,000
2019		137,000
2020		126,000
2021		42,000
2022		32,000
Thereafter		142,000
Total	$	616,000

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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