Note 3 - Business Combinations

12 Months Ended

Jun. 30, 2013

Business Combinations [Abstract]

Business Combination Disclosure [Text Block]

3. Business Combinations

Acquisition of Informative Design Partners

On March 1, 2012, the Company acquired all of the net assets of Inlet Technology, LLC (“Inlet”) a Virginia Beach-based value added reseller. The purchase price was $1,300,000, plus a post-closing adjustment of $252,000 for increases in the working capital level since the previous balance sheet date. The purchase price and working capital adjustment were paid in cash. Goodwill of $794,000 and other intangible assets of $480,000 were recorded as a results of this acquisition. The goodwill represents the results of expected synergies from combining the operations of the acquired business with the Company’s operation and intangible assets that do not qualify for separate recognition, such as an assembled workforce. The impact of this acquisition was not material to the Company’s consolidated balance sheets and results of operations.

The other intangible asset resulting from this acquisition was the Inlet customer list. The estimated fair value of this list was $480,000 as of the acquisition date, and the carrying amount was $448,000 at June 30, 2012. The customer list has an estimated useful life of five years and future expected amortization expense is approximately $96,000 per year for fiscal years 2013 through 2016 and $64,000 for fiscal year 2017.

On July 31, 2012, the Company acquired certain assets of Informative Design Partners (“IDP”) for an initial payment of $1 million, comprised of $600,000 in cash and $400,000 in common stock, plus contingent consideration to be paid over three years based on earnings achieved from the acquired business.