Intangible Assets

3 Months Ended

Sep. 30, 2013

Intangible Assets [Abstract]

Intangible Assets

8.Intangible Assets

Intangible assets as of September 30, 2013 and June 30, 2013 consisted of the following (in thousands):

		September 30, 2013								June 30, 2013
								Net								Net
		Carrying		Accumulated				Carrying		Carrying		Accumulated				Carrying
		Value		Amortization		Impairment		Value		Value		Amortization		Impairment		Value
Prostiva Acquisition
Patents and Technology	$	1,529	$	(345)	$	(274)	$	910	$	1,529	$	(311)	$	(274)	$	944
Customer Base		531		(119)		(95)		317		531		(108)		(95)		328
Trademarks		325		(41)		(65)		219		325		(37)		(65)		223
EDAP Acquisition
Customer Base		2,300		(2,276)		-		24		2,300		(2,270)		-		30
Other		67		(3)		-		64		64		(2)		-		62
Total intangible assets	$	4,752		(2,784)	$	(434)	$	1,534	$	4,749		(2,728)	$	(434)	$	1,587

Amortization expense associated with intangible assets for the three-months ended September 30, 2013 and 2012 was $56,000 and $68,000, respectively. As a result of the delisting of our common stock from the NASDAQ exchange at the start of trading on June 7, 2013 and the continued decline of our stock price, we tested our long-lived assets and goodwill for impairment as of June 30, 2013.  Based on this impairment testing it was determined that our intangible assets acquired as part of the Prostiva acquisition were impaired.  As a result, we recorded an impairment charge as of June 30, 2013 of $274,000 on our developed technology asset which was recorded in cost of goods sold, a $95,000 impairment charge on our customer base asset and a $65,000 impairment charge on trademarks both of which were recorded in operating expense. The fair value of patents and technology, customer base and trademark intangible assets was determined based on a discounted cash flow analysis of forecasted future operating results.  There was no impairment indicators noted during the quarter ended September 30, 2013. 

All intangible assets are amortized using the straight-line method over their estimated remaining useful lives. Patents and technology related to the Prostiva acquisition are being amortized over 9 years with amortization expense recorded in cost of goods sold. Customer base and trademarks related to the Prostiva acquisition are being amortized over 9 years and 16 years, respectively. The customer base related to the EDAP acquisition, completed in October of 2000, has a remaining useful life of 1 year, and other intangible assets related to patent costs are amortized upon issuance over their estimated useful lives.

Future amortization expense related to the net carrying amount of intangible assets is estimated to be as follows (in thousands):

Fiscal Years
2014	$	164
2015		200
2016		194
2017		194
2018		194