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Composition of Certain Financial Statement Items | 12 Months Ended
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Jun. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
Composition of Certain Financial Statement Items | 4. Composition of Certain Financial Statement Items Inventory Inventory is stated at the lower of cost (first-in, first-out) or market and consists of the following (in thousands):
|  | June 30, |
|  | 2015 |  |  | 2014 |
Raw materials /purchased components |  | $ | 2,025 |  |  | $ | 878 |
Work in process |  |  | 1,030 |  |  |  | 525 |
Sub-assemblies /finished components |  |  | 1,095 |  |  |  | 823 |
Finished goods |  |  | 160 |  |  |  | 374 |
Total inventory |  | $ | 4,310 |  |  | $ | 2,600 |
Investments During the fiscal year ended June 30, 2015, we liquidated our investment portfolio to fund our working capital requirements, especially our inventory requirements, as we prepared to launch production of two new products. We recorded realized gains of $455,000 during fiscal 2015 upon the sale of our investments in marketable equity securities of publicly held companies. Our investments at June 30, 2014 amounted to $1,058,000 which represented an aggregate cost basis of $857,000, gross unrealized gains aggregating $209,000 and unrealized losses of $7,000. During the fiscal year ended June 30, 2014, we sold certain of our investments in marketable equity securities of publicly held companies and recorded realized gains of $65,000. Equipment and Leasehold Improvements Equipment and leasehold improvements consist of the following (in thousands):
|  | June 30, |
|  | 2015 |  |  | 2014 |
Office furnishings and fixtures |  | $ | 2,008 |  |  | $ | 2,054 |
Machinery and equipment |  |  | 4,803 |  |  |  | 4,574 |
Leasehold improvements |  |  | 2,086 |  |  |  | 2,312 |
Total |  |  | 8,897 |  |  |  | 8,940 |
Less: Accumulated depreciation and amortization |  |  | (7,427 | ) |  |  | (7,365 | )
|  | $ | 1,470 |  |  | $ | 1,575 |
Depreciation expense, which includes capital lease amortization, for the years ended June 30, 2015 and 2014 amounted to $534,000 and $527,000, respectively. Intangibles Intangibles consist of the following (in thousands):
|  | June 30, 2015 |  |  | June 30, 2014 |
Capitalized software development costs |  | $ | 73 |  |  | $ | 37 |
Covenant not to compete |  |  | 52 |  |  |  | — |
Trade name |  |  | 54 |  |  |  | — |
Customer list and backlog |  |  | 316 |  |  |  | — |
Patent-related costs |  |  | 96 |  |  |  | 68 |
Total intangibles |  | $ | 591 |  |  | $ | 105 |
Less accumulated amortization |  |  | (44 | ) |  |  | — |
|  | $ | 547 |  |  | $ | 105 |
Capitalized software development costs relate to internally developed software, which will be amortized over the estimated product life of the underlying product which was released for sale during the fourth quarter of fiscal 2015. Both the covenant not to compete and the customer list and backlog relate to assets acquired in conjunction with the business acquisitions more fully described in Note 3 above and will be amortized over various periods not to exceed ten years. The trade name relates exclusively to Fineline Molds and has an indefinite life, subject to impairment loss consideration if certain conditions exist. Patent-related costs consist of legal fees incurred in connection with patent applications, and will be amortized over the life of the applicable patent upon its issuance, or expensed immediately in the event the patent office denies the issuance of the patent. Expected amortization expense for the next five fiscal years ending June 30 are as follows (in thousands):
Fiscal Year: |  | Amortization Expense
2016 |  | $117
2017 |  | 53
2018 |  | 53
2019 |  | 53
2020 |  | 47
Total expected amortization |  | $323
Accrued Liabilities Accrued liabilities consist of the following (in thousands):
|  | June 30, |
|  | 2015 |  |  | 2014 |
Warranty |  | $ | 261 |  |  | $ | 237 |
Payroll and related items |  |  | 302 |  |  |  | 240 |
Accrued legal and professional fees |  |  | 46 |  |  |  | 13 |
Accrued sales, use and excise taxes |  |  | 36 |  |  |  | 8 |
Accrued losses on development contracts |  |  | 385 |  |  |  | 468 |
Accrued inventory in transit |  |  | 83 |  |  |  | 22 |
Other |  |  | 89 |  |  |  | 102 |
|  | $ | 1,202 |  |  | $ | 1,090 |
Accumulated Other Comprehensive Income Accumulated other comprehensive income consists of the following (in thousands):
|  | June 30, |
|  | 2015 |  |  | 2014 |
Unrealized gain on marketable equity securities |  | $ | — |  |  | $ | 262 |
Less: Reclassification of gains included in net loss |  |  | — |  |  |  | (65 | )
Unrealized gain on marketable securities, net |  | $ | — |  |  | $ | 197 |

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