XML 96 R13.htm IDEA: XBRL DOCUMENT
v2.4.0.6

INTANGIBLE ASSETS | 12 Months Ended
--- | ---
Jun. 30, 2012
Goodwill and Intangible Assets Disclosure [Abstract] |
INTANGIBLE ASSETS | 5. INTANGIBLE ASSETS Amortization expense relating to all acquired intangible assets was approximately $998,000, $1,034,000, and $1,034,000 during each of the years ended June 30, 2012, 2011, and 2010, respectively. The intangible asset balance and related accumulated amortization consisted of the following:
|  | June 30, 2012 |
|  | Gross |  |  |  |  |  |  |
|  | Carrying |  | Accumulated |  | Net Carrying |
|  | Amount |  | Amortization |  |  | Value |
Intangible assets: |  |  |  |  |  |  |  |  |
Trademarks |  | $ | 1,482,100 |  |  | $ | (1,050,000 | ) |  | $ | 432,100 |
Patents |  |  | 9,294,000 |  |  |  | (8,529,647 | ) |  |  | 764,353 |
Total |  | $ | 10,776,100 |  |  | $ | (9,579,647 | ) |  | $ | 1,196,453 |
|  | June 30, 2011 |
|  | Gross |  |  |  |  |  |  |  |  |
|  | Carrying |  | Accumulated |  | Net Carrying |
|  | Amount |  | Amortization |  |  | Value |
Intangible assets: |  |  |  |  |  |  |  |  |  |  |  |
Trademarks |  | $ | 1,482,100 |  |  | $ | (949,375 | ) |  | $ | 532,725 |
Patents |  |  | 9,294,000 |  |  |  | (7,632,372 | ) |  |  | 1,661,628 |
Total |  | $ | 10,776,100 |  |  | $ | (8,581,747 | ) |  | $ | 2,194,353 |
The Company’s test for impairment of its indefinite-lived trademarks consists of the trademarks: 1) VendingMiser, 2) CoolerMiser, 3) PlugMiser and 4) SnackMiser. As a result of its testing in fiscal years ended June 30, 2012 and 2010 the Company determined that no impairment had occurred. In the testing in fiscal year 2011, the Company determined that the sum of the expected discounted cash flows attributable to the trademarks was less than its carrying value of $1,014,000, and that an impairment write-down was required. The primary driver behind the decrease in the value was a decrease in the revenue expectations for the trademarks from the time the trademarks were acquired in July 2003 to when the impairment assessment was prepared. Accordingly, in fiscal year 2011, the Company performed a valuation of the trademark’s fair value with the assistance of an independent valuation specialist. The fair value of the trademarks was determined by a method known as “relief from royalty”, in which the fair value is determined by reference to the amount of royalty income the intangible would generate if it were licensed in an arm’s-length transaction. The essential assumptions in a valuation via an income approach are as follows:
| ● | The related dollar sales volume;
| ● | The percentage royalty on sales;
| ● | The adjustment for taxes;
| ● | The remaining useful economic life;
| ● | The percentage return on investment; and,
| ● | The tax amortization benefit.
During the fourth quarter of the fiscal year ended June 30, 2011, the fair value of the trademarks was determined to be $432,100. This assessment resulted in an impairment write-down during the fourth fiscal quarter of $581,900, which is included in “Impairment of intangible asset” in the Consolidated Statement of Operations for the fiscal year ended June 30, 2011. The trademark described above, is not related to the Company’s core operations consisting of its ePort wireless, cashless products and services. At June 30, 2012, the expected amortization of the intangible assets is as follows: approximately $764,000 in fiscal year 2013 and $0 in fiscal year 2014. The weighted average useful life of these amortized intangible assets is 1.0 years at June 30, 2012. At June 30, 2012 and 2011, $432,100 and $432,100, respectively of trademarks has an indefinite life and is included in the intangible assets tables above.

X
- Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for all or part of the information related to intangible assets. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 142 -Paragraph 44, 45, 46 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=7658586&loc=d3e16323-109275 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=7658586&loc=d3e16373-109275 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=7658586&loc=d3e16265-109275 + Details
Name: | us-gaap_IntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration