Note 5 - Goodwill and Intangibles

3 Months Ended

Sep. 30, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets Disclosure [Text Block]

Note 5:   Goodwill and Intangibles

The Company performed a qualitative analysis in accordance with ASU 2011-08 for its Bytewise reporting unit for its October 1, 2012 annual assessment of goodwill (commonly referred to as “Step Zero”). From a qualitative perspective, in evaluating whether it is more likely than not that the fair value of the reporting units is not less than their respective carrying amount, relevant events and circumstances were taken into account, with greater weight assigned to events and circumstances that most affect the fair value of Bytewise or the carrying amounts of its assets. Items that were considered included, but were not limited to, the following: macroeconomic conditions, industry and market conditions, cost factors, overall financial performance, changes in management or key personnel, and other Bytewise specific events. After assessing these and other factors the Company determined that it was more likely than not that the fair value of the Bytewise reporting unit was not less than the carrying amount as of October 1, 2012. The company is currently performing its annual impairment test for fiscal 2014 and expects to have it completed by December 31, 2013.

Amortizable intangible assets consist of the following (in thousands):

	9/30/2013			6/30/2013
Non-compete agreement	$	600		$	600
Trademarks and trade names		1,480			1,480
Completed technology		2,010			2,010
Customer relationships		4,950			4,950
Software development		688			635
Other intangible assets		325			325
Total		10,053			10,000
Accumulated amortization		(2,067	)		(1,778	)
Total net balance	$	7,986		$	8,222

Amortizable intangible assets are being amortized on a straight-line basis over the period of expected economic benefit.

The estimated useful lives of the intangible assets subject to amortization are 14 years for trademarks and trade names, 8 years for non-compete agreements, 10 years for completed technology,  8 years for customer relationships and 5 years for software development.

The estimated aggregate amortization expense for the remainder of fiscal 2014, for each of the next five years and thereafter, is as follows (in thousands):

2014 (Remainder of year)	$	878
2015		1,171
2016		1,171
2017		1,169
2018		1,101
2019		1,036
Thereafter		1,460