Note 7 - Goodwill and Intangibles

12 Months Ended

Jun. 30, 2017

Goodwill and Intangible Assets Disclosure [Text Block]

GOODWILL AND INTANGIBLES

The following tables present information about the Company’s goodwill and identifiable intangible assets on the dates indicated (in thousands):

	June 30, 2017							June 30, 2016
	Cost		Accumulated Amortization			Net		Cost		Accumulated Amortization			Net
Goodwill	$	4,668	$	-		$	4,668	$	3,034	$	-		$	3,034
Identifiable intangible assets		17,117		(7,249	)		9,868		12,115		(5,625	)		6,490

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

	June 30, 2017			June 30, 2016
Non-compete agreements	$	600		$	600
Trademarks and trade names		2,070			1,480
Completed technology		2,358			2,358
Customer relationships		5,580			4,950
Software development		6,184			2,402
Other intangible assets		325			325
Total		17,117			12,115
Accumulated amortization		(7,249	)		(5,625	)
Total net balance	$	9,868		$	6,490

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

The estimated aggregate amortization expense for each of the next

five

years, and thereafter, is as follows (in thousands):

Fiscal Year
2018	$	2,086
2019		2,008
2020		1,484
2021		1,081
2022		848
Thereafter		2,361

The Company performed a qualitative analysis in accordance with ASU

2011

of its Bytewise reporting unit for its

October

2016

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 its 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, 2016.

There were

triggering events identified from the annual assessment date through the fiscal year-end.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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