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COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS

6 Months Ended

Dec. 31, 2014

Organization, Consolidation and Presentation of Financial Statements [Abstract]

COMPOSITION OF CERTAIN FINANCIAL STATEMENT ITEMS

NOTE 3. 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):

	December 31, 2014		June 30, 2014
Raw materials/purchased components	$	1,055	$	878
Work in process		725		525
Sub-assemblies/finished components		881		823
Finished goods		219		374
Total inventory	$	2,880	$	2,600

Investments

Investments are stated at market value and consist of the following (in thousands):

	December 31, 2014		June 30, 2014
Marketable equity securities	$	1,002	$	1,058

Investments at December 31, 2014 and June 30, 2014 had an aggregate cost basis of $609,000 and $857,000, respectively, gross unrealized gains aggregating $393,000 and $209,000, respectively, and unrealized losses of $0 and $7,000, respectively.

During the three and six months ended December 31, 2014, we sold certain of our investments in marketable equity securities of publicly held companies and recorded realized gains of $59,000.

Intangibles

Intangibles consist of the following (in thousands):

	December 31, 2014		June 30, 2014
Capitalized software development costs	$	73	$	37
Covenant not to compete		30		—
Customer list		137		—
Patent-related costs		94		68
Total intangibles	$	334	$	105

Capitalized software development costs relate to internally developed software, which will be amortized over the estimated product life of the underlying product currently in development. Both the covenant not to compete and the customer list relate to assets acquired in conjunction with the purchase of Huber, which closed on December 1, 2014, and will be amortized over five and ten years, respectively. 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.