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Note 4 - Acquisitions | 9 Months Ended
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Mar. 31, 2020
Notes to Financial Statements |
Business Combination Disclosure [Text Block] | Note 4. Acquisitions: We periodically complete business combinations that align with our business strategy. Acquisitions are accounted for using the acquisition method of accounting, which requires, among other things, that assets acquired and liabilities assumed be recognized at fair value as of the acquisition date and the results of operations of each acquired business are included in our consolidated statements of comprehensive income from their respective dates of acquisition. Acquisition costs are recorded in selling, general and administrative expenses as incurred. B-MoGen Biotechnologies On June 4, 2019, the Company acquired the remaining interest in B-MoGen Biotechnologies, Inc. (B-MoGen) for approximately $17.4 million, net of cash acquired, plus contingent consideration of up to $38.0 million, subject to certain product development milestones and revenue thresholds. The Company previously held an investment of $1.4 million in B-MoGen and recognized a gain of approximately $3.7 million on the date of the transaction representing the adjustment of our historical investment to its fair value as previously disclosed in our 10K/A. The goodwill recorded as result of the acquisition represents the strategic benefits of growing the Company’s product portfolio and the expected revenue growth from increased market penetration. The goodwill is not deductible for income tax purposes. The business became part of the Protein Sciences reportable segment in the fourth quarter of fiscal year 2019. Purchase accounting was finalized during the third quarter of fiscal 2020. The preliminary and final fair values of the assets acquired and liabilities assumed are as follows (in thousands):
|  | Preliminary Allocation at Acquisition Date |  |  | Adjustments to Fair Value |  |  | Adjusted Final Allocation at March 31, 2020 |
Current assets, net of cash |  | $ | 504 |  | $ | - |  | $ | 504 |
Equipment and other long-term assets |  |  | 269 |  |  | - |  |  | 269 |
Intangible assets: |  |  |  |  |  |  |  |  |  |
Developed technology |  |  | 14,000 |  |  | - |  |  | 14,000 |
Customer relationships |  |  | 400 |  |  | - |  |  | 400 |
Goodwill |  |  | 16,457 |  |  | (326 | ) |  | 16,131 |
Total assets acquired |  |  | 31,630 |  |  | (326 | ) |  | 31,304 |
Liabilities |  |  | 211 |  |  | - |  |  | 211 |
Deferred income taxes, net |  |  | 3,377 |  |  | (326 | ) |  | 3,051 |
Net assets acquired |  | $ | 28,042 |  | $ | - |  | $ | 28,042 |
Cash paid, net of cash acquired |  | $ | 17,448 |  | $ | - |  | $ | 17,448 |
Fair value of contingent consideration |  |  | 5,500 |  |  | - |  |  | 5,500 |
Fair value of historical investment in B-MoGen |  |  | 5,094 |  |  | - |  |  | 5,094 |
Net assets acquired |  | $ | 28,042 |  | $ | - |  | $ | 28,042 |
Tangible assets and liabilities acquired were recorded at fair value on the date of close based on management's assessment. The purchase price allocated to developed technology was estimated based on management's forecasted cash inflows and outflows and using a multi-period excess earnings method to calculate the fair value of assets purchased. The amount recorded for developed technology is being amortized with the expense reflected in cost of goods sold in the Condensed Consolidated Statement of Earnings and Comprehensive Income. The amortization period for developed technology is estimated to be 14 years. The net deferred income tax liability represents the net amount of the estimated future impact of adjustments for costs to be recognized as intangible asset amortization, which is not deductible for income tax purposes offset by the deferred tax asset for the calculation of acquired NOLs.

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- Definition The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -URI http://asc.fasb.org/topic&trid=2303972 + Details
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