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Intangible Assets
3 Months Ended
Sep. 30, 2019
Goodwill And Intangible Assets Disclosure [Abstract]  
Intangible Assets

4.Intangible Assets

We acquired intangible assets consisting of a Trade Name and Customer/Distributor Relationships in addition to goodwill in connection with the acquisitions of Coord3 and NMS in the third quarter of fiscal 2015 which is considered our CMM reporting unit.  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.  The amortization periods for customer/distributor relationships, trade name and software are five years, ten years and five years, respectively. 

During the fourth quarter of fiscal 2019, due to the impairment indicators discussed in Note 1, we assessed whether the carrying amounts of our long-lived assets in the CMM reporting unit (the asset group) may not be recoverable and therefore may be impaired. To assess the recoverability, the undiscounted cash flows of the asset group were analyzed over a range of potential remaining useful lives with the customer relationships as the primary asset.  The result was that the asset group carrying value exceeded the sum of the undiscounted cash flows.  After a fair value analysis, we determined that our trade name and customer relationships were impaired. We recorded a non-cash impairment loss related to these definite-lived intangible assets of $1.4 million. There were no impairment indicators for other long-lived assets subject to amortization.

At September 30, 2019, 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,

 

 

 

2019

 

 

 

 

 

 

2019

 

 

2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2019

 

 

 

Gross

 

 

 

 

 

 

Net

 

 

Gross

 

 

 

 

 

 

Impact of

 

 

 

 

 

 

Net

 

 

 

Carrying

 

 

Accumulated

 

 

Carrying

 

 

Carrying

 

 

Impairments

 

 

Foreign

 

 

Accumulated

 

 

Carrying

 

 

 

Amount

 

 

Amortization

 

 

Amount

 

 

Amount

 

 

 

 

 

 

Currency

 

 

Amortization

 

 

Amount

 

Customer/Distributor Relationships

 

$

-

 

 

$

-

 

 

$

-

 

 

$

3,249

 

 

$

(589

)

 

$

(7

)

 

$

(2,653

)

 

$

-

 

Trade Name

 

 

1,655

 

 

 

(1,048

)

 

 

607

 

 

 

2,523

 

 

 

(795

)

 

 

(8

)

 

 

(1,059

)

 

 

661

 

Software

 

 

2,027

 

 

 

(822

)

 

 

1,205

 

 

 

1,902

 

 

 

-

 

 

 

-

 

 

 

(747

)

 

 

1,155

 

Total

 

$

3,682

 

 

$

(1,870

)

 

$

1,812

 

 

$

7,674

 

 

$

(1,384

)

 

$

(15

)

 

$

(4,459

)

 

$

1,816

 

 

Amortization expense was $104,000 and $291,000 for the three months ended September 30, 2019 and 2018, respectively.    

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

 

Years Ending June 30,

 

Amount

 

2020 (excluding the three months ended September 30, 2019)

 

 

252

 

2021

 

 

373

 

2022

 

 

412

 

2023

 

 

377

 

2024

 

 

324

 

after 2024

 

 

74

 

 

 

$

1,812