Note 9 - Restructuring Costs And Loss On Impairment Of Assets

12 Months Ended

Dec. 31, 2012

Restructuring and Related Activities Disclosure [Text Block]

NOTE 9:                      RESTRUCTURING COSTS AND LOSS ON IMPAIRMENT OF ASSETS

Six month transition period ended December 31, 2011:

The Company has determined not to renew the lease at the production facility where Wheatex® has been produced and to abandon its equipment on the leased premises upon the expiration of the lease in August 2012, which required an impairment analysis to be performed.  The estimated undiscounted future cash flows generated by the equipment that manufactures Wheatex® were less than their carrying values.  The carrying values of the equipment were reduced to fair value, which resulted in an impairment charge of $706.  Fair value was estimated using discounted future cash flows.

In conjunction with the impairment described above, management performed an impairment review of certain other equipment used to produce Wheatex®.  In this review, management reviewed the timing of the anticipated business development and recent decisions to not renew leases where Wheatex® is currently produced.  The carrying values of the equipment were reduced to fair value, which resulted in an impairment charge of $595.  Because on the uncertainty in estimated cash flow estimates, management estimated fair value using a third party appraisal.  During the year ended December 31, 2012, the Company was able to identify a buyer for certain equipment previously used to produce Wheatex® that had previously been impaired.  The Company sold this equipment, resulting in a gain on sale of $889 during the year ended December 31, 2012.

These fair value measurements are considered to be Level 3 in the fair value hierarchy as the estimates used were based on significant unobservable inputs.

During fiscal 2009, the Company restructured its business, resulting in the accruals for various restructuring activities including severance costs and lease termination charges among other items.

Activity related to restructuring costs was as follows:

	Year Ended December 31, 2012			Six Months Ended December 31, 2011			Year Ended June 30, 2011
Balance at beginning of period	$	915		$	1,655		$	2,685
Provision for additional expense		-			-			249
Payments and adjustments(a)		(431	)		(740	)		(1,279	)
Balance at end of period	$	484		$	915		$	1,655