Note 7 - Goodwill and Intangible Assets

6 Months Ended

Dec. 31, 2018

Notes to Financial Statements

Goodwill and Intangible Assets Disclosure [Text Block]

Note

7:

   Goodwill and Intangible Assets

The Company’s acquisition of Bytewise in

2011

and a private software company in

2017

resulted in the recognition of goodwill totaling

$4.7

million. The Company is required, on a set date, to annually assess its goodwill in order to determine whether or

not

it is more likely than

not

that the fair value of the reporting unit’s goodwill exceeded its carrying amount. Determining the fair value of a reporting unit is subjective and requires the use of significant estimates and assumptions.

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

October 1, 2018

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 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 the Bytewise reporting unit exceeded its carrying amount as of

October 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.

The Company performed a qualitative analysis for its

February 1, 2018

annual assessment of goodwill associated with its 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.

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

	12/31/2018			6/30/2018
Non-compete agreement	$	600		$	600
Trademarks and trade names		2,070			2,070
Completed technology		2,358			2,358
Customer relationships		5,580			5,580
Software development		8,185			7,600
Other intangible assets		325			325
Total		19,118			18,533
Accumulated amortization		(10,318	)		(9,216	)
Total net balance	$	8,800		$	9,317

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 range between

5

years for software development and

20

years for some trademark and trade name assets.

The estimated aggregate amortization expense for the remainder of fiscal

2019

and for each of the next

five

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

2019 (Remainder of year)	$	1,192
2020		1,884
2021		1,481
2022		1,249
2023		947
2024		540
Thereafter		1,507