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 September 30, 2018, there are no indications of potential impairment of these intangible assets.

Our intangible assets are as follows (in thousands):

	September 30,					September 30,		June 30,					June 30,
	2018					2018		2018					2018
	Gross					Net		Gross					Net
	Carrying		Accumulated			Carrying		Carrying		Accumulated			Carrying
	Amount		Amortization			Amount		Amount		Amortization			Amount
Customer/Distributor Relationships	$	3,316	$	(2,376	)	$	940	$	3,329	$	(2,219	)	$	1,110
Trade Name		2,575		(923	)		1,652		2,586		(862	)		1,724
Software		1,583		(564	)		1,019		1,490		(504	)		986
Other		124		(124	)		-		124		(124	)		-
Total	$	7,598	$	(3,987	)	$	3,611	$	7,529	$	(3,709	)	$	3,820

Amortization expense was $291,000 and $282,000 for the three month periods ended September 30, 2018 and 2017, respectively.

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

Years Ending June 30,	Amount
2019 (excluding the three months ended September 30, 2018)		935
2020		881
2021		439
2022		439
2023		395
after 2023		522
	$	3,611