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, 2018							June 30, 2017
	Cost		Accumulated Amortization			Net		Cost		Accumulated Amortization			Net
Goodwill	$	4,668	$	-		$	4,668	$	4,668	$	-		$	4,668
Identifiable intangible assets		18,533		(9,216	)		9,317		17,117		(7,249	)		9,868

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

	June 30, 2018			June 30, 2017
Non-compete agreements	$	600		$	600
Trademarks and trade names		2,070			2,070
Completed technology		2,358			2,358
Customer relationships		5,580			5,580
Software development		7,600			6,184
Other intangible assets		325			325
Total		18,533			17,117
Accumulated amortization		(9,216	)		(7,249	)
Total net balance	$	9,317		$	9,868

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
2019	$	2,291
2020		1,767
2021		1,364
2022		1,132
2023		829
Thereafter		1,934

The Company performed a quantitative analysis of its Bytewise reporting unit for its

October

2017

annual assessment of goodwill (commonly referred to as “Step One” evaluation). With the assistance of an independent

third

-party valuation specialist, the Company estimated the fair value using an income approach based on the present value of future cash flows. The Company believes this approach yields the most appropriate evidence of fair value. The key assumptions utilized in the discounted cash flow model included estimates of future cash flows from operating activities offset by estimated capital expenditures of the reporting unit, the estimated terminal value for the reporting unit, a discount rate based on a weighted average cost of capital, and an assessment of current market capitalization.

Under the quantitative analysis, the fair value assessment of the Bytewise goodwill exceeded the carrying amount by approximately

81%.

Therefore,

goodwill impairment was determined to exist. If future results significantly vary from current estimates, and related projections due to changes in industry or market conditions, the Company

may

be required to record impairment charges.

The Company performed a qualitative analysis for its

February 1, 2018

annual assessment of goodwill (commonly referred to as “Step Zero”) associated with its fiscal

2017

purchase of a private software company. From a qualitative perspective, in evaluating whether it is more likely than

not

that the fair value of a reporting unit exceeds its carrying amount, relevant events and circumstances are taken into account, with greater weight assigned to events and circumstances that most affect the fair value 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 and changes in management or key personnel. After assessing these and other factors the Company determined that it was more likely than

not

that the fair value of this reporting unit exceeded its carrying amount as of

February 1, 2018.

If future results significantly vary from current estimates, and related projections due to changes in industry or market conditions, the Company

may

be required to record impairment charges.