4.Intangibles

We acquired intangible assets in addition to goodwill in connection with the acquisitions of Coord3 and NMS in the third quarter of fiscal 2015. Furthermore, we continue to develop intangibles, primarily software. These assets are susceptible to shortened estimated useful lives and changes in fair value due to changes in their use, market or economic changes, or other events or circumstances. We evaluate the potential impairment of these intangible assets whenever events or circumstances indicate their carrying value may not be recoverable. Factors that could trigger an impairment review include historical or projected results that are less than the assumptions used in the original valuation of an intangible asset, a change in our business strategy or our use of an intangible asset or negative economic or industry trends.

If an event or circumstance indicates that the carrying value of an intangible asset may not be recoverable, we assess the recoverability of the asset by comparing the carrying value of the asset to the sum of the undiscounted future cash flows that the asset is expected to generate over its remaining economic life. If the carrying value exceeds the sum of the undiscounted future cash flows, we compare the fair value of the intangible asset to the carrying value and record an impairment loss for the difference. We generally estimate the fair value of our intangible assets using the income approach based on a discounted cash flow model. The income approach requires the use of many assumptions and estimates including future revenues and expenses, discount factors, income tax rates, the identification of groups of assets with highly independent cash flows, and assets’ economic lives. Volatility in the global economy makes these assumptions and estimates more judgmental. Actual future operating results and the remaining economic lives of our intangible assets could differ from those used in assessing the recoverability of these assets and could result in an impairment of intangible assets in future periods. Through March 31, 2018, there are no indications of potential impairment of these intangible assets.

Our intangible assets are as follows (in thousands):


		March 31,				March 31,		June 30,				June 30,
		2018				2018		2017				2017
		Gross				Net		Gross				Net
		Carrying		Accumulated		Carrying		Carrying		Accumulated		Carrying
		Amount		Amortization		Amount		Amount		Amortization		Amount
Customer/Distributor Relationships	$	3,523	$	(2,173)	$	1,350	$	3,263	$	(1,524)	$	1,739
Trade Name		2,735		(843)		1,892		2,533		(591)		1,942
Software		1,393		(447)		946		677		(312)		365
Other		131		(131)		-		121		(94)		27
Total	$	7,782	$	(3,594)	$	4,188	$	6,594	$	(2,521)	$	4,073

Amortization expense was $312,000 and $261,000 for the three month periods ended March 31, 2018 and 2017, respectively. Amortization expense was $874,000 and $803,000 for the nine month periods ended March 31, 2018 and 2017, respectively.

The estimated amortization of the remaining intangible assets by year is as follows (in thousands):



Years Ending June 30,		Amount
2018 (excluding the nine months ended March 31, 2018)		328
2019		1,256
2020		886
2021		417
2022		417
after 2022		884
	$	4,188